What is the full form of CRR?

CRR stands for "Cash Reserve Ratio"

CRR represents the Cash Reserve Ratio. It alludes to the money that banks need to keep up with the Reserve Bank of India (RBI). It is a sure level of the complete money held by a bank.CRR continues changing now and then. RBI chooses the CRR and likewise, banks need to keep a specific level of their stores with RBI.

The business banks are needed to keep normal money offset with the RBI. This equilibrium ought not to be under 3% of the Net Demand and Time Liabilities (NDTL) on a fortnightly premise. The RBI is engaged to build the CRR up to 20% of the NDTL.

The primary goal of CRR is to empower banks to keep up their dissolvability and liquidity. It is an essential instrument that helps control the cash supply in an economy. It empowers RBI to suck abundance liquidity and to deliver assets if there should arise an occurrence of low liquidity in the framework. In this way, a higher CRR will, in general, diminish the liquidity in the framework and a lower CRR will in general expand the liquidity in the framework. The normal CRR from 1999 until 2017 is 5.57%. It was most elevated (10.50 %) in March 1999.