If the Reserve Bank of India sets the Cash Reserve Ratio at 6% and the Statutory Liquidity Ratio at 8%, what is the total amount of reserves that a commercial bank must hold per ₹100 of deposits?

Step-by-step solution

1. A commercial bank must hold reserves equal to CRR plus SLR of its deposits.
2. Compute the CRR part: $0.06\times 100=₹6$.
3. Compute the SLR part: $0.08\times 100=₹8$.
4. Add the two amounts: $₹6+₹8=₹14$.
5. Thus the required reserves per ₹100 deposit are ₹14.

Concept tested: Reserve requirement calculation

Published 16 October 2026 · How this solution was prepared and checked