Question

Q7- How improvement in banking habits of the people pushes up credit availability
From
the
commercial
banks?
​

Answer 1

Answer:

When banking habits of people improve, they start holding less money as cash-in-hand. Instead, more and more money is deposited with the commercial banks. Accordingly, cash reserves of the commercial banks start rising. Higher cash reserves of the banks enable them to deposit more funds with the RBI as CRR deposits.

I HOPE THIS WILL HELP YOU GUYS.PLZ LIKE THE ANS.

TY.