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 sure that excess money will flow in the government as it should be while for SLR, this will help in some of the unexpected needs of the different depositors. The CRR should be maintained with the Central Bank of India, while the SLR should be maintained by the bank itself.
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 liabilities which is in the form of liquid assets that a commercial bank must maintain. SLR is maintained by the bank itself in cash, gold, and other assets. Unlike SLR, commercial banks can earn interest on SLR. Hope you find this information helpful.
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 pay the demand of the depositor. CRR is maintained by the Central Bank of India while the SLR is not maintained by this bank.
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.
The form of CRR is usually cash, but it is different for the SLR. It will also come in the form of cash, but aside from that, there will also be other assets such as gold and other government securities. The effect of CRR is to make sure that it will control the excess money that may flow in the economy while in SLR, this will help meet the demands that depositors may have.