The Cash Reserve Ratio (CRR) is a monetary policy tool used by central banks to regulate the money supply in an economy.
It is the percentage of a bank's total deposits that it is required to maintain as reserves with the central bank.
The CRR is a tool that the RBI can use to control inflation and manage liquidity in the economy.
By increasing the CRR, the RBI can reduce the amount of money that banks have available to lend, which can help to slow down inflation.
Conversely, by decreasing the CRR, the RBI can increase the amount of money that banks have available to lend, which can help to stimulate economic growth.
The current CRR in India is 4.5%.
Which means that banks are required to maintain 4.5% of their total deposits as reserves with the RBI.
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