CBSE BOARD XII, asked by dhruvagarwal5260, 10 months ago

How changes in CRR and SLR influence credit control by central bank

Answers

Answered by Anonymous

Explanation:

For SLR, banks are asked to keep the certain proposition of liquid assets in the form of gold and cash by RBI. Banks don't earn returns on the money parked as CRR with RBI under CRR requirements. ... RBI controls the liquidity in the banking system with CRR. SLR is employed to manage the bank's leverage for credit growth.

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