give 3 points of difference between CRR SLR - Economics - Money and Banking

Question

give 3 points of difference between CRR SLR

Umang Kalra · Accepted Answer

Dear Student,

Here is the answer to your question

Cash reserve ratio (CRR)
Statutory liquidity ratio (SLR)

It is minimum amount of funds that a
commercial bank has to maintain with the Reserve Bank of India
It is the minimum amount of cash that
commercial banks are required to keep with themselves

CRR controls liquidity in economy
SLR regulates credit growth in the
country

It is with RBI maintained as cash
Banks maintain the SLR with
themselves

Cash reserve ratio (CRR)	Statutory liquidity ratio (SLR)
It is minimum amount of funds that a commercial bank has to maintain with the Reserve Bank of India.	It is the minimum amount of cash that commercial banks are required to keep with themselves.
CRR controls liquidity in economy	SLR regulates credit growth in the country
It is with RBI maintained as cash	Banks maintain the SLR with themselves