Glossary
/CRR Full Form
What is the Full Form of CRR?
The full form of CRR is Cash Reserve Ratio.
It is a strict rule set by the RBI. Banks have to park a certain percentage of their total deposits as pure cash with the central bank, and they absolutely cannot touch this money to lend it out. If inflation gets too high, the RBI hikes the CRR to suck extra cash out of the system. It’s a mechanism that directly controls how much money banks have available to lend for home or car loans.
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