what percentage of their deposits is kept as cash by the banks in india?

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How much percentage of a bank's deposits does the bank hold as cash?

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Question

How much percentage of a bank's deposits does the bank hold as cash?

A

4%

B

6%

C

10%

D

12%

Medium Open in App

Updated on : 2022-09-05

Solution Verified by Toppr

Correct option is A)

Banks in India these days hold about 4 per cent of their deposits as cash. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day. 

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Banks in India hold a small percentage of their deposits as cash. This cash deposit is known as .

Banks in India hold a small percentage of their deposits as cash. This cash deposit is known as .

Byju's Answer Standard IX Economics

Reserve Bank of India

Banks in Indi... Question

Banks in India hold a small percentage of their deposits as cash. This cash deposit is known as .

A cash deposit B demand deposit C reserve D deposit Open in App Solution

The correct option is C reserve

Banks in India hold around 15% as cash with themselves and with the RBI. This cash deposit is known as 'reserve'. This helps to ensure that there is money available to the people even if there are large spendings by the bank.

Suggest Corrections 2

SIMILAR QUESTIONS

Q.

Why do banks keep a small portion of deposits as cash with themselves?

Q. Cash reserve Ration (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank of a country. CRR ___Q.

The system followed by banks wherein they keep a percentage of deposits as cash with themselves is called:

Q.

According to RBI, ___ is defined as the amount of cash the bank keeps as a percentage of the total deposits.

Q. According to RBI, is defined as the amount of cash the bank keeps as a percentage of the total deposits.

View More EXPLORE MORE

Reserve Bank of India

Standard IX Economics

स्रोत : byjus.com

How much amount of the deposits is kept as cash by the banks and why ?

Banks in India these days hold about 4 per cent of their deposits as cash. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day.

Home > Hindi > कक्षा 10 > Social Science > Chapter > Money And Credit L3 >

How much amount of the deposit...

How much amount of the deposits is kept as cash by the banks and why ?

लिखित उत्तर Solution

Banks in India these days hold about 4 per cent of their deposits as cash. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day.

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