Understanding Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
Introduction The Central Bank (like the Reserve Bank of India – RBI) uses various tools to control the flow of money in the economy. Two of the most important tools are: Cash Reserve Ratio (CRR) Statutory Liquidity Ratio (SLR) These tools help maintain financial stability, control inflation, and regulate the credit available in the economy.
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