Exams › IBPS PO › General Awareness

What interest does the Reserve Bank of India (RBI) pay to banks on Cash Reserve Ratio (CRR) balances?

1. 4% per annum
2. 3% per annum
3. 1% per annum
4. No interest is paid

Correct answer: No interest is paid

Solution

Cash Reserve Ratio is the portion of deposits banks must keep with the RBI as a statutory reserve. RBI does not pay interest on CRR balances. Therefore, the correct answer is that no interest is paid.

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