Question

Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called ______ .
A. Statutory Liquidity Ratio
B. Cash Reserve Ratio
C. Bank Deposit
D. Reserve Repo

Answer 1

Correct Answer - B
The cash Reverve Ratio is the amount of funds that the banks are bound to keep with Reverse Bank of India, with referece to the demand and time liabilities (NDLT) to ensure the liquidity and solvency of the banks. This proportion is specified by RBI and could change from time to time.