Question

what are the differences between CRR and RDR and in economics ?​

Answer 1

Answer:

The Reserve Deposit Ratio (RDR) is the proportion of the total deposits commercial banks keeps as reserves. The Cash Reserve Ratio (CRR) is the deposits that banks must maintain with the RBI. ... The total amount of deposits held by all commercial banks in the country is much larger than the total size of their reserves

Answer 2

The difference between Cash Reserve Ratio(CRR) and Statutory Liquidity Ratio(SLR) are as follow:

1. Cash Reserves Ratio (CRR) refers to the proportion of total deposits of the commercial banks which they must have keep as cash reserves with the central bank whereas Statutory Liquidity Ratio (SLR) refers to liquid assets that the commercial banks must hold on daily basis as a percentage of their total deposits.

2. In cash reserve ratio only cash is maintained with the central bank whereas in statutory liquidity ratio both cash and other types of assets like gold and securities can be maintained.

3. Cash reserve ratio regulates the flow of money in the economy whereas statutory liquidity ratio ensures solvency of banks in the economy.

4. Cash reserve ratio is usually lower than statutory liquidity ratio so that solvency of commercial banks can be maintained.