CRR vs SLR: Key Differences in Banking Reserve Ratios
CRR (Cash Reserve Ratio) is the slice of deposits banks must park with the Reserve Bank of India as cash, idle and earning no interest. SLR (Statutory Liquidity Ratio) is the slice banks must keep in liquid assets—government bonds, gold, or cash—inside their own vaults. People confuse CRR and SLR because both are “reserves” and…