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What is the current Cash Reserve Ratio?

What is the current Cash Reserve Ratio?

What is the current Cash Reserve Ratio?

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Chiranjibi Aug. 30, 2018

The current cash reserve reserve stands at 4% of the total deposits.


Total deposits represent the amounts of money deposited by customers in the bank under current accounts, savings, and term/fixed deposits.


What this basically means is that, if the available cash with the bank is less than 4% of the total deposits, the bank has to withdraw funds from other sources like balance with RBI and balances with other banks to maintain the cash at or above 4%.

What is the current Cash Reserve Ratio?

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