CRR
Business & Finance abbreviation · Banking
| Stands for | Cash reserve ratio |
|---|---|
| Categories | Business & Finance |
CRR stands for Cash reserve ratio, a banking abbreviation.
Share of a bank's deposits that it must hold as reserves with the central bank, unavailable for lending. The term is used mainly in India, where the Reserve Bank of India adjusts the CRR as a monetary policy tool.
Example: The RBI cut the CRR by 50 basis points in December 2024, releasing about ₹1.16 lakh crore of liquidity.
Usage notes
Banks earn no interest on CRR balances held with the RBI. The US Federal Reserve set its reserve requirement ratios to zero in March 2020. In EU banking regulation, CRR instead means the Capital Requirements Regulation, which implements the Basel capital rules.
Related abbreviations
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