definition cash reserve ratio
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The reserve requirement is a central bank regulation that sets the minimum amount of reserves that must be held by a commercial bank. The minimum reserve is generally determined by the central bank to be no less than a specified percentage of the amount of deposit liabilities the commercial bank owes to its customers.
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Cash Reserve Ratio is a proportion of the total deposits and reserves of the commercial banks that is to be kept with the central bank (RBI) in liquid form.
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