While watching the CNBC, swapping through the TV Channels, I heard a term CRR. I went on further swapping other channels, without giving a food for thought— What CRR is all about?
Next Morning, the first thing, I saw on the front page of the Newspaper, to add on to my Curiosity, was : CRR hiked by 50bps (basis points).
This drove the headlight of my brain, that this is the term, which we come across every now & then, by 1 way or other, & it impacts us directly or in an Indirect fashion, but we never tend to dig it a further to understand it.
Also, Banks play a significant role in one’s life and the contribution of banks to the nation and the economy is immense. There are hundreds of things about banks which a common man does not know. One such concept is CRR. We all read in the news papers that
RBI has increased the CRR limits and the interest rate will go up. But what is the correlation between CRR and the interest rates? What is CRR? Why do they increase or decrease it? Like this, there are many questions. Here is a small article to answer all your queries relating to CRR.
Cash Resreve Ratio
CRR: This abbreviation is made up of 3 alpahabets, each of which has got a significant meaning:
Bharat Sahni
PlanUrMoney 