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Discussion

Consider the following statements and select correct:

1. The cash part of SLR of the bank is known as ‘Till money’.

2. ’Till money’ of commercial banks is the part of CRR.

3. Banks with no ‘Till money’ are not allowed to operate by the RBI.

  • A.1, 2 and 3 are correct
  • B.2 and 3 are correct
  • C.Only 3 is correct 
  • D.Only 2 is correct

Answer: D

Statement 2 is only correct. Till money is a name given to currency coins, which bank maintain and meet everyday cash requirement of their clients. It is counted as part of their cash reserve ratio.

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