The Cash Reserve Ratio is the percentage of a bank's deposits that it must hold as

1. The RBI caps credit creation by fixing a minimum reserve. 2. CRR is the share of deposits a bank must keep as **cash reserves**. 3. With a CRR of 20 per cent, deposits of Rs 100 require Rs 20 held back, leaving Rs 80 to lend. 4. Holding government securities is the SLR requirement, which is a separate rule. _Source: syllabus Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.3.2 Limits to Credit Creation and Money Multiplier_