WHAT IS CASH RESERVE RATIO (CRR)

Cash Reserve Ratio       (monetary policy term -1)

CRR can be defined as that part of NDTL of the bank that a bank has to deposit to the RBI in the form of cash. In other words, CRR is a certain percentage of the total deposits of a bank that the bank has to keep with the RBI in the form of cash. At present the CRR is 4.50% of the total deposits. This amount of money which is maintained in the form of CRR is neither used by the RBI nor can it be used by the bank. Hence the amount goes out of the economy. Earlier there
were lower as well as upper ceilings on CRR. The RBI was not allowed to increase CRR above 15% or bring it down below 3%. However, through RBI amendment Act 2006 these ceilings were removed.
 If the RBI feels that the flow of money in the economy is high, leading to inflation. In such situation it will increase the CRR to reduce liquidity. On the other hand if the RBI feels that the flow of money is low and is affecting economic growth. Then the CRR will be reduced in order to infuse additional amount of money. CRR is calculated every fortnight. It is calculated on total average deposit of 14 days.

Comments

Post a Comment

Popular posts from this blog

Uniform Civil Code (UCC) -

Image
The Law Commission of India has asked for views and proposals from the public regarding the UCC. The  UCC  has been a highly debated and politically charged issue  in India. The  Law Commission's  previous stance on the UCC was that  it was neither necessary nor desirable . UCC is a  proposal to replace the personal laws  of various religious communities with a common set of laws for all citizens. What is Uniform Civil Code? About: The Uniform Civil Code is  mentioned in Article 44 of the Indian Constitution,  which is part of the  Directive Principles of State Policy. These principles are  not legally enforceable but are meant to guide the state  in making policies. It has been supported by some as a way  to promote national integration and  gender justice , but opposed by others as a threat to religious freedom and diversity. The  only state in India that has a UCC is Goa,  which retained ...
Read more

Age of marriage men -women & Prohibition of child marriage act, 2006

Image
Recently, the Union Cabinet cleared a proposal to bring uniformity in the marriageable age of men and women. By amending the Prohibition of Child Marriage Act (PCMA), 2006 and other personal law, the legal age of marriage of women will be raised rom 18 to 21 years.The decision is based on the recommendation of a four-member task force led by former Samata Party chief Jaya Jaitly. Note: The task force was set up to re-examine the age of marriage and its correlation to health and social indices such as infant mortality, maternal mortality, and nutrition levels among mothers and children. Key Points About Legal Framework of Minimum Age for Marriage: In India, the minimum age of marriage was prescribed for the first time by the law known as the Sarda Act, 1929.  It was later renamed as the Child Marriage Restraint Act (CMRA), 1929.In 1978, the law was amended to raise the minimum age of marriage to 18 years for girls and 21 years for boys....
Read more

MANIPUR ISSUE

Image
Why in news? A horrifying video has gone viral on social media in which two women from the kuki-zomi community being paraded naked and sexualy assaulted by a mob in manipur.who this incident is a shameful act for any civilised society. The fire in manipur was lit in early May, when violence between miteis and kukis flared. Since then, over a hundred people have died and property, including a large number of churches, destroyed.  Thousands have had to flee their homes and many continue to live in releaf camps.        The main issue In manipur: The issue in manipur pertains to the long-standing demand for greater autonomy and protection of the right of several ethnic communities in the state. Manipur has a complex socio-political landscape with various ethnic groups, including the meiteis, Nagas, kukis and others, each with their own aspirations and demands.  Some of the major issues in manipur include:  1.Inner line permit (ILP):...
Read more

Sexual harassment of women

Image
. SEXUAL HARASSMENT Why in news? Recently, the Supreme Court took the cognizance of “serious lapses” and “uncertainty” in the implementation of the Protection of Women from Sexual Harassment (PoSH) Act, 2013. More on the news • The cognizance came in the backdrop of a newspaper survey revealing only 16 out of 30 national sports federations in the country had constituted Internal Complaints Committees (ICC) mandated under the 2013 Act. About Sexual harassment at workplace • Cost of Sexual harassment at workplace  Individuals: Psychological suffering; behavioral change like isolation; Stress-related physical and mental illness; and Professional losses like foregoing career opportunities.  Employers/Enterprises: Low productivity, Hindered progress and innovation, Poor image of company, etc.  Society: Women’s undermined access to high-status; Legal and criminal justice expenses; Long term rehabilitation costs; etc. • Sexual Harassment of Women at Workplace (...
Read more

Mission chandrayaan 3 / mission moon

Image
What is Chandrayaan 3? Chandrayaan 3  spacecraft is the 3 rd  lunar exploration expedition, outlined by the  Indian Space Research Organisation (ISRO) . ISRO planned this spacecraft to exhibit India’s soft landing proficiency on a stellar body. It will only consist of a rover and lander and will communicate to the earth via an orbiter from Chandrayaan 2. This ambitious mission encompasses several configurations, integration and cognisance. Additionally, there are several other detailed testing remaining to evaluate the spacecraft. Background of Chandrayaan 3 Mission ISRO designed the Chandrayaan 2 mission to send the Chandrayaan 2 spacecraft with an orbiter, rover and lander. They launched this spacecraft on-board the  GSLV-Mk 3 , one of the mightiest geosynchronous vehicles. The lander Vikram’s failure on a soft landing resulted in hindering the attempt of rover Pragyaan to travel on the Moon. This led to endeavouring another mission to showcase India’s ...
Read more

TOP 7 TEMPLES IN UNESCO IN INDIA:-

Image
Top 7 temple in UNESCO in india :-     Here are the top 7 UNESCO World Heritage sites in india that are temples, along with their image: 1. Brihadeeswarar Temple, Tamil Nadu: -Built in the 11th century, it is the world's first      complete granite temple. It represents the chola Dynasty's architecture brilliance. 2. Khajuraho group of Monuments madhya pradesh:    Known for its exquisite sculpture and intricate artwork depicting various aspects of human life, love,and spirituality. It showcases the architectural brilliance of the chandela dynasty.  3. Konark sun Temple, odisa:     Dedicated to the sun God, Surya, it is designed in shape of a colossal chariot carrying the sun God. In intricate stone carvings and architectural grandeur make it a prominent UNESCO site. 4: Group of Monuments at Hampi, Karnataka:    Hampi was the capital of Vijaynagara empire,and the a...
Read more

Top 5 tourism places in UNESCO in india

Image
India is know for its rich culture heritage, history and diverse landscapes. Here are five UNESCO World heritage sites in india that are popular tourist destinations. 1.Taj mahal, Agara, Utter pradesh; -The taj mahal is an iconic monument and one of the seven wonders of the world. -built by emperor Shah jahan in the 17th century, it is a symbol of love and an architectural marvel. -the white marble mausoleum is renowned for its intricate carvings, Inlay work, and stunning symmetrical design. 2. Jaipur city , Rajasthan: - Jaipur, also known as the pink city, is the capital of Rajasthan  and a UNESCO world Heritage site. - it is renowned for its beautifully planned and well-preserved architecture, including palaces,forts, and temples. -The city palace, Amer fort,  janter manter, and Hawa mahal are some of the popular attractions.  3. Qutub minar, Delhi:  - Qutub minar is the tallest brick minaret in the world and a UNESCO World Heritage site. - ...
Read more