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Question : In India, _____fixes the Cash Reserve Ratio(CRR) for the banks in the economy.

Option 1: Reserve Bank of India

Option 2: Ministry of Finance

Option 3: Ministry of External Affairs

Option 4: State Bank of India


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Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Reserve Bank of India


Solution : The correct answer is the Reserve Bank of India.

The Reserve Bank of India has mandated that commercial banks hold a certain portion of their total deposits as reserves, known as the cash reserve ratio, or CRR. The Reserve Bank of India has mandated that banks avoid circumstances in which they lack the necessary funds to repay loans that they have made over what they are worth.

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