over 200 crores. Till this year, approximately 80% of the bankingsegment in India were under Government ownership.After the nationalisation of banks in India, the branches of thepublic sector banks rose to approximately 800% in deposits andadvances took a huge jump by 11,000%.
: A Central Bank or reserve bank, by definition, isthe organization within a specific country that regulates all of thecurrency supplies and related policies for that particular area. ACentral Bank will perform various actions, but its most important job is to make certain that the national currency and MoneySupply remain stable. Depending on the country, Central Banksmay be government owned and controlled or may be run under regulations that are specifically created to prevent extensivegovernment interference.Eg.RBI is central bank of India and FED is central bank of USA.
SLR((Statutory Liquidity Ratio)
is the amount a commercialbank needs to maintain in the form of cash, or gold or govt.approved securities (Bonds) before providing credit to itscustomers. SLR rate is determined and maintained by the RBI(Reserve Bank of India) in order to control the expansion of bankcredit. Present rate of SLR is 25 %.
CRR (Cash Reserve Ratio):
Cash reserve Ratio (CRR) is theamount of Cash(liquid cash like gold) that the banks have to keepwith RBI. This Ratio is basically to secure solvency of the bankand to drain out the excessive money from the banks. If RBIdecides to increase the percent of this, the available amount withthe banks comes down and if RBI reduce the CRR then availableamount with Banks increased and they are able to lend more.RBIhas reduced this ratio three times and reduced it from 9 % to 5%.