Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY2 Marks
Question
What is the basic difference between $CRR$ and $SLR.$
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Answer
$(i)$ Cash Reserve Ratio $(CRR):$
It is the ratio $($or percentage$)$ of net demand and time deposits that commercial banks must keep as cash reserves with the central bank.
$(ii)$ Statutory Liquid Ratio $(SLR):$
It is the ratio $($or percentage$)$ of net demand and time deposits that commercial banks must keep with themselves in the form of specified liquid assets. $($E.g. gold or government approved securities$).$
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