Question
Indian Economy Question on Banking, finance and macroeconomic policies
Which of the following is/are NOT CORRECT?
A
Under the Reserve Bank of India Act, 1938, every scheduled bank has to keep certain minimum cash reserves with the RBI
B
CRR is the statutory reserve requirements to be kept by every scheduled bank with the RBI
C
A higher SLR increases the capacity of commercial banks to grant loans and advances
D
A high SLR can be considered as a tax on the banking system
Answer
Under the Reserve Bank of India Act, 1938, every scheduled bank has to keep certain minimum cash reserves with the RBI
Explanation
Solution
The correct Options are A and C : Under the Reserve Bank of India Act, 1938, every scheduled bank has to keep certain minimum cash reserves with the RBI AND A higher SLR increases the capacity of commercial banks to grant loans and advances