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![ayusshsanghi Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::106683993.png) Ayussh Sanghi [@ayusshsanghi](/creator/twitter/ayusshsanghi) on x 31K followers
Created: 2025-07-10 13:26:36 UTC

X. CRR – Cash Reserve Ratio:

➤ Banks must keep a certain % of deposits as cash with RBI.

💡 Example:
You deposit ₹1,000 in a bank. 

- Bank must keep ₹40 (if CRR = 4%) with RBI. 

- It can lend only ₹960. 
- This controls liquidity.


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**Related Topics**
[lend](/topic/lend)
[rbi](/topic/rbi)
[central bank actions](/topic/central-bank-actions)

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