What is CRR
or
Cash Reserve Ratio?
Navigating Stories
Use the following gestures to browse story content
AD
Slide 1 of 6![egg,food,sphere,bowl,tape]()
Slide 2 of 6
Defined: CRR or Cash Reserve Ratio
Cash Reserve Ratio is the portion of cash deposits that a bank is required to keep with the Reserve Bank of India
Slide 3 of 6
To conduct business in India, all banks need to maintain a Cash Reserve Ratio.
It's a cash-only security deposit, stored at the Reserve Bank of India.
Slide 4 of 6
Like a rainy day fund for banks – to help them in a tough scenario ☔️
Slide 5 of 6
Similar to how a house owner would use the security deposit to recover any losses from your stay, the CRR serves as a safety buffer in case a bank's business fails.
Slide 6 of 6
Feel a little wiser?
Check out more such nuggets on Fi Money: Simplifying all things finance
Featured in this story
Transcript
Looks like your cart is empty. Why not go ahead and add some products in?
Link copied!
https://stories.fi.money/crr-meaning-full-form-and-more