What is the purpose of the Cash Reserve Ratio (CRR)?

Q. What is the purpose of the Cash Reserve Ratio (CRR)?
Answer: To control inflation by regulating money supply
Notes: The Cash Reserve Ratio is the portion of a bank's net demand and time liabilities that it must maintain with the RBI. By adjusting CRR, the RBI can control the money supply and curb inflation.

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📌 Question Number: 2 in Important Terms Related to Money Markets in the above course in App.