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- The difference between CRR (Cash Reserve Ratio) and LRR (Legal Reserve Ratio) is as follows12:
- CRR: Refers to the cash reserves of commercial banks with the central bank as a percentage of their deposits.
- LRR: Refers to the total percentage of deposits that commercial banks keep themselves, known as the legal reserve ratio.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Legal reserve ratio refers to the minimum fraction of deposits which the banks are mandate to keep as cash themselves. The legal reserve ratio is fixed by Central bank. Legal Reserve Ratio has two components: Cash Reserve Ratio (CRR)-It refers to cash reserves of Commercial Banks with the Central Bank as a percentage of their deposits.byjus.com/question-answer/what-is-legal-reserve-r…What is the difference between CRR and LRR? Create refers to cash reserve ratio which means total percentage of deposits of commercial banks with central banks. whereas lrr refers to total percentage of deposits in which commercial banks kept itself. known as legal reserve ratio.edurev.in/question/323908/What-is-the-difference-… - People also ask
What is Legal Reserve Ratio? Explain its components. - BYJU'S
WEBCash Reserve Ratio (CRR)-It refers to cash reserves of Commercial Banks with the Central Bank as a percentage of their deposits. Statutory Liquidity Ratio (SLR) refers to reserves in the form of liquid assets (including (i) cash, (ii) gold, and (iii) approved securities) with …
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- In CRR, banks have to keep cash reserves of a certain percentage with RBI, but in the case of SLR, banks have to keep reserves of liquid assets with themselves. CRR is a measure used by the Central Bank of India to regulate the liquidity in the economy and control the flow of money in the country. On the other hand, SLR is another measure used by t...
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