What is the difference between CRR and SLR? - ProProfs Discuss
Topics
Products
Follow Us:

What is the difference between CRR and SLR?

Asked by R. Barnes, Last updated: Jan 23, 2020

+ Answer
Request

4 Answers

P. Micah

P. Micah

Answered Oct 21, 2019

CRR is known to be Cash Reserve Ratio. This is a type of reserve that should be maintained with the central bank. All of the banking companies should make sure that a specific percentage is always maintained. This is usually maintained in the form of cash, while the SLR is available in the form of liquid assets. There are also instances when it would come in the form of government securities and even gold. The use of CSR will make su...Read More
 

S. Hughes

S. Hughes

Answered Sep 17, 2019

CRR stands for Cash Reserve Ratio. Stand describes the amount of cash that commercial banks must have in reserves to maintain a current account with the Central Bank. All commercial banks are expected to keep a certain percentage of their net demand with the Reserve Bank of India (RBI). CRR is used to control the excess flow of money in the economy by regulating liquidity in the economy. SLR stands for Statutory Liquidity Ratio. SLR refers to the certain percentage of net time and lia...Read More
 

J. Pollock

J. Pollock, Science Professor, Los Angeles

Answered Sep 04, 2019

CRR stands for Cash Reserve Ratio and it is in charge of controlling the liquidity in the banking systems while SLR means Statutory Liquidity Ratio is more responsible for making sure that credit will continue to grow in the country. CRR is usually in the form of cash while SLR can be in the form of cash and all the other assets that may be needed to improve the assets and securities. CRR will be able to control the excess money that may be in the economy while the SLR will be used to...Read More
 

Bobby Rickets

Bobby Rickets, Content Reviewer

Answered Sep 03, 2019

These are two things that may commonly be used in banking, but these two are different from each other. CRR stands for Cash Reserve Ratio. SLR stands for Statutory Liquidity Ratio. This is a type of reserves that banks have. The reserves of banks will differ a bit depending on what the bank can carry. ...Read More
 

Search for Google images
Select a recommended image
Upload from your computer
Search for Google images
Select a recommended image
Upload from your computer
Search for Google images
Select a recommended image
Upload from your computer

Email Sent
We have sent an email to your address "" with instructions to reset your password.