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Financial Terms

CRR

Cash Reserve Ratio (CRR) is a vital tool used by the Reserve Bank of India to regulate the liquidity in the banking system. It refers to the minimum percentage of public deposits that commercial banks are required to maintain with the Central Bank. This ensures that the banks have enough cash to meet any unforeseen withdrawal demands from their customers. CRR is a crucial aspect of monetary policy and helps in maintaining financial stability in the economy.
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