Question

hi friends don't spam why do banks maintain cash reserve​

Answer 1

Answer:

Explanation:

The Cash Reserve Ratio ensures that the Central Bank has a part of the bank's deposit. Therefore, part of the deposit is safe. Another objective of CRR is to maintain inflation and to keep it under control. The RBI increases the CRR in order to lower the bank's loanable funds during high inflation in the economy

Answer 2

Answer:

banks keep 15 percent of the deposits with them so that they can pay money to the depositors who might come on any given day to withdraw money.