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Asked by Ramesh on :Feb. 27, 2018

What is the current Cash Reserve Ratio?

What is the current Cash Reserve Ratio?

What is the current Cash Reserve Ratio?

0

Chiranjibi Aug. 30, 2018

The current cash reserve reserve stands at 4% of the total deposits.

Total deposits represent the amounts of money deposited by customers in the bank under current accounts, savings, and term/fixed deposits.

What this basically means is that, if the available cash with the bank is less than 4% of the total deposits, the bank has to withdraw funds from other sources like balance with RBI and balances with other banks to maintain the cash at or above 4%.

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