3. What is CRR Rate?
Cash Reserve Ratio (CRR) is a certain percentage of the total bank deposit has to be kept in the current account with RBI which means banks do not have access to that much amount for any economic activity or commercial activity. Banks can’t lend the money to corporate or individual borrower; banks can’t use that money for investment purposes. So, that CRR remains in current account and banks don’t earn anything on that.
