As of October 2024, the cash reserve ratio (CRR) in India is _____________. 

This question was previously asked in
RPF Constable 2024 Official Paper (Held On 02 Mar, 2025 Shift 2)
View all RPF Constable Papers >
  1. 6.5%
  2. 10%
  3. 7.8%
  4. 4.5%

Answer (Detailed Solution Below)

Option 4 : 4.5%
Free
General Science for All Railway Exams Mock Test
2.1 Lakh Users
20 Questions 20 Marks 15 Mins

Detailed Solution

Download Solution PDF

The correct answer is 0.045.

Key Points

  • The Cash Reserve Ratio (CRR) is a monetary policy tool used by the Reserve Bank of India (RBI) to control liquidity in the banking system.
  • As of October 2024, the CRR in India is set at 4.5%.
  • CRR is the percentage of a bank's total deposits that must be maintained as reserves with the RBI.
  • Changes in the CRR impact the lending capacity of banks and influence overall economic activity.
  • The primary purpose of CRR is to ensure liquidity and stability in the banking system.

Additional Information

  • Statutory Liquidity Ratio (SLR)
    • SLR is the percentage of a bank's total deposits that must be maintained in the form of liquid assets such as cash, gold, or government securities.
    • As of October 2024, the SLR is 18%.
    • SLR is used to regulate the credit growth in the economy and ensure that banks have sufficient liquidity to meet customer demands.
  • Repo Rate
    • The Repo Rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds.
    • As of October 2024, the Repo Rate is 6.5%.
    • Changes in the Repo Rate affect the interest rates on loans and deposits in the economy.
  • Reverse Repo Rate
    • The Reverse Repo Rate is the rate at which the RBI borrows money from commercial banks.
    • It is used to control the money supply in the economy.
    • As of October 2024, the Reverse Repo Rate is 3.35%.
  • Monetary Policy Committee (MPC)
    • The MPC is responsible for fixing the benchmark interest rates in India.
    • It consists of six members - three from the RBI and three appointed by the Government of India.
    • The primary objective of the MPC is to maintain price stability while keeping in mind the objective of growth.
Latest RPF Constable Updates

Last updated on Jun 21, 2025

-> The Railway Recruitment Board has released the RPF Constable 2025 Result on 19th June 2025.

-> The RRB ALP 2025 Notification has been released on the official website. 

-> The Examination was held from 2nd March to 18th March 2025. Check the RPF Exam Analysis Live Updates Here.

Get Free Access Now
Hot Links: teen patti gold online teen patti download apk teen patti real cash game teen patti gold real cash