CRR Full Form In English
The full form of CRR is Cash Reserve Ratio. It is a crucial term in the field of banking and finance. CRR refers to the percentage of a bank’s total deposits that must be kept in reserve with the Reserve Bank of India (RBI) in the form of cash. This amount cannot be used by banks for lending or investment purposes. The main objective of maintaining the CRR is to ensure that banks have sufficient liquidity and to control the money supply in the economy. When the RBI increases the CRR, banks have less money to lend, which helps in controlling inflation. On the other hand, when the CRR is reduced, banks can lend more, which helps in boosting economic growth.
CRR Full Form In Hindi
CRR का पूरा नाम कैश रिज़र्व रेश्यो (Cash Reserve Ratio) होता है। यह बैंकिंग और वित्तीय क्षेत्र का एक महत्वपूर्ण शब्द है। CRR का अर्थ होता है कि बैंकों को अपनी कुल जमा राशि का एक निश्चित प्रतिशत भारतीय रिज़र्व बैंक (RBI) के पास नकद के रूप में रखना पड़ता है। इस राशि का उपयोग बैंक ऋण देने या निवेश करने के लिए नहीं कर सकते। CRR का मुख्य उद्देश्य बैंकों की तरलता बनाए रखना और अर्थव्यवस्था में धन की आपूर्ति को नियंत्रित करना है। जब RBI CRR बढ़ाता है तो बैंकों के पास ऋण देने के लिए कम पैसा रहता है जिससे मुद्रास्फीति नियंत्रित होती है, और जब CRR घटाया जाता है तो बैंकों के पास अधिक पैसा उपलब्ध होता है जिससे आर्थिक विकास को बढ़ावा मिलता है।
Read More: AMUL Full Form In English And Hindi
Frequently Asked Questions
What is the current CRR rate in India?
The CRR rate is decided by the Reserve Bank of India and may change from time to time depending on economic conditions.
Who decides the CRR in India?
The Reserve Bank of India (RBI) decides and regulates the CRR.
Why is CRR important?
CRR helps in controlling inflation, maintaining liquidity, and ensuring that banks remain financially sound.
How does CRR affect loans and interest rates?
When CRR is high, banks have less money to lend, leading to higher interest rates. When CRR is low, banks can lend more, reducing interest rates.
Is CRR applicable to all banks?
Yes, CRR is applicable to all scheduled commercial banks in India.
Conclusion
The Cash Reserve Ratio (CRR) is one of the most important monetary tools used by the Reserve Bank of India to manage liquidity, inflation, and financial stability in the economy. By adjusting the CRR, the RBI ensures a proper balance between economic growth and price stability. Understanding CRR helps in comprehending how the central bank influences the flow of money in the financial system.
