what is vault cash ?Is there any difference between vault cash and cash reserve?
Dear student,
Valut cash refers to the cash that the commercial banks voluntarily keep in their vault. The objective of keeping vault cash is to maintain flexibility in their operations.
On the other hand, cash reserve refers to the proportion of total deposits that the commercial have to mandatory keep with the RBI (as defined by the RBI).
Valut cash refers to the cash that the commercial banks voluntarily keep in their vault. The objective of keeping vault cash is to maintain flexibility in their operations.
On the other hand, cash reserve refers to the proportion of total deposits that the commercial have to mandatory keep with the RBI (as defined by the RBI).