How to control inflation and deflation with the help of CRR?
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For this, RBI increases the CRR, lowering the loanable funds available with the banks. This, in turn, slows down investment and reduces the supply of money in the economy. As a result, the growth of the economy is negatively impacted. However, this also helps bring down inflation.
explain; आरबीआई को जब आवश्यकता महसूस हो वह अर्थव्यवस्था के संतुलन के लिए समय-समय पर कैश रिजर्व रेश्यो को घटा या बढ़ा सकता है. अगर आरबीआई को लगता है कि बाजार में पैसे की सप्लाई को कम किया जाए तो वह सीआरआर बढ़ा देता है जिससे वाणिज्यिक बैंकों से लोगों तक पहुंचने वाला पैसा कम हो जाता है.
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ugh sorry for my previous answer you might felt wierd it's okay-,-
- For this, RBI increases the CRR, lowering the loanable funds available with the banks. This, in turn, slows down investment and reduces the supply of money in the economy. As a result, the growth of the economy is negatively impacted. However, this also helps bring down inflation.
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