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Statutory reserve requirements An overview

By: Material type: Mixed materialsMixed materialsPublication details: 2013Description: 217-220Subject(s): NLM classification:
  • 332.1
In: MANAGEMENT ACCOUNTANTMSummary: Statutory reserve requirements i.e., both CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) act as a tool of monetary policy for the purpose of managing liquidity into the financial and economic system and thereby ensure the profitability position for the banking industry. Traditionally CRR has been one of the monetary tools in the hands of RBI along with other instruments like SLR and Open Market Operations to fight inflation in the country.
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Statutory reserve requirements i.e., both CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) act as a tool of monetary policy for the purpose of managing liquidity into the financial and economic system and thereby ensure the profitability position for the banking industry. Traditionally CRR has been one of the monetary tools in the hands of RBI along with other instruments like SLR and Open Market Operations to fight inflation in the country.

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