CRR is maintained as a percent of a bank's:
ANet demand and time liabilities
BTotal loans and advances given
CPaid-up capital and reserves
DGold and foreign currency
Answer & Solution
Correct answer: A. Net demand and time liabilities
1. CRR is a daily average balance with RBI.
2. It is a share of the bank's liabilities.
3. Specifically its NDTL.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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