Which out of the following is/are correct regarding Cash Reserve Ratio (CRR)?
Section 42 of RBI Act, 1934 lays foundation for maintaining CRR by scheduled commercial bank with RBI.
Section 24 of the Banking Regulations Act, 1949 provide powers to RBI to levy CRR on banks
As of Feb 2021, CRR is 3 per cent of NDTL
According to Section 42 of the Reserve Bank of India Act, 1934, each scheduled commercial bank has to maintain a minimum cash balance with the Reserve Bank as cash reserve ratio (CRR) which is prescribed by the Reserve Bank from time to time as certain percentage of its net demand and time liabilities (NDTL) relating to the second preceding fortnight.
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