The amount of Cash Reserves that commercial banks are required to keep with the RBI is referred to as:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. CRR.
The amount of cash reserves that commercial banks are required to keep with the Reserve Bank of India (RBI) is referred to as the Cash Reserve Ratio (CRR). It is a certain percentage of a bank’s total deposits that must be maintained in the form of cash with the RBI. The CRR is a tool used by the central bank to regulate liquidity in the banking system, control inflation, and ensure financial stability by managing the money supply in the economy.