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- The difference between CRR (Cash Reserve Ratio) and LRR (Legal Reserve Ratio) is as follows123:
- CRR: Refers to the cash reserves of commercial banks with the central bank as a percentage of their deposits.
- LRR: Refers to the total percentage of deposits that commercial banks keep themselves.
- CRR is set by the central bank, while LRR is the total percentage of deposits that banks retain for their own liquidity.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Legal reserve ratio refers to the minimum fraction of deposits which the banks are mandate to keep as cash themselves. The legal reserve ratio is fixed by Central bank. Legal Reserve Ratio has two components: Cash Reserve Ratio (CRR)-It refers to cash reserves of Commercial Banks with the Central Bank as a percentage of their deposits.byjus.com/question-answer/what-is-legal-reserve-r…What is the difference between CRR and LRR? Create refers to cash reserve ratio which means total percentage of deposits of commercial banks with central banks. whereas lrr refers to total percentage of deposits in which commercial banks kept itself. known as legal reserve ratio.edurev.in/question/323908/What-is-the-difference-…CRR and LRR are two important terms in the banking sector that are used by the Reserve Bank of India (RBI) to regulate the liquidity in the banking system. CRR stands for Cash Reserve Ratio, while LRR stands for Liquidity Reserve Ratio.edurev.in/question/849338/What-is-CRR-and-LRR-- - People also ask
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