Distinguish between CRR and SLR. - Vidyadip

Question

Distinguish between CRR and SLR.

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Answer

Legal Reserve Ratio (LRR) is the minimum ratio of deposits, legally required to be kept as cash reserves. The LRR is fixed by the Central Bank.
Cash Reserve Ratio (CRR) is the minimum percentage net demand and time deposits to be kept by the commercial banks with the central bank.

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