Cash Reserve Ratio Calculator

✖Cash Reserves is the amount of cash held by the bank with the central bank.ⓘ Cash Reserves [CR]			+10% -10%
✖Net Demand & Time Liabilities includes payable on demand, such as current and savings accounts, as well as time liabilities, such as fixed deposits and recurring deposits.ⓘ Net Demand & Time Liabilities [NDTL]			+10% -10%

✖Cash Reserve Ratio can be calculated as a percentage of a bank’s net demand and time liabilities.ⓘ Cash Reserve Ratio [CRR]

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Formula

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Cash Reserve Ratio

Formula

`"CRR" = ("CR"/"NDTL")*100`

Example

`"4"=("400000"/"10000000")*100`

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Cash Reserve Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100
CRR = (CR/NDTL)*100
This formula uses 3 Variables

Variables Used

Cash Reserve Ratio - Cash Reserve Ratio can be calculated as a percentage of a bank’s net demand and time liabilities.
Cash Reserves - Cash Reserves is the amount of cash held by the bank with the central bank.
Net Demand & Time Liabilities - Net Demand & Time Liabilities includes payable on demand, such as current and savings accounts, as well as time liabilities, such as fixed deposits and recurring deposits.

STEP 1: Convert Input(s) to Base Unit

Cash Reserves: 400000 --> No Conversion Required
Net Demand & Time Liabilities: 10000000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CRR = (CR/NDTL)*100 --> (400000/10000000)*100

Evaluating ... ...

CRR = 4

STEP 3: Convert Result to Output's Unit

4 --> No Conversion Required

FINAL ANSWER

4 <-- Cash Reserve Ratio

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< 11 Financial Institutions Management Calculators

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Go Capital Adequacy Ratio = (Tier One Capital+Tier Two Capital)/Risk Weighted Asset

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Return on Operating Assets

Go Return on Operating Assets = modulus(Net Income)/Operating Assets

Net Interest Margin

Go Net Interest Margin = Net Interest Income/Average Interest Earning Assets

Cash Reserve Ratio

Go Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100

Tier 1 Capital Ratio

Go Tier One Capital Ratio = Tier One Capital/Risk Weighted Asset

Credit Deposit Ratio

Go Credit Deposit Ratio = (Total Advances/Total Deposits)*100

Debt Yield

Go Debt Yield = Net Operating Income/Loan Amount

Net Worth

Go Net Worth = Total Assets-Total Liabilities

Cash Reserve Ratio Formula

Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100
CRR = (CR/NDTL)*100

What is Cash Reserve Ratio?

The CRR or Cash Reserve Ratio definition is a specific amount of cash that banks have to keep as a deposit with the Reserve Bank of India (RBI). The percentage of cash is fixed and has to be followed by every bank. The Reserve Bank of India continually monitors and manages the cash flow in the economy through various monetary instruments, including the Cash Reserve Ratio (CRR). Each scheduled commercial bank is mandated by the RBI to adhere to specific cash reserve ratio guidelines. When the CRR rate held with the RBI is high, it can lead to reduced liquidity in the economy. Conversely, a lower CRR may result in higher overall liquidity in the economy.The purpose of the CRR ratio is to ensure the stability of the banking system and control inflation. By mandating banks to keep a certain percentage of their deposits with the central bank, it can control the amount of money that is available for lending in the economy.

How to Calculate Cash Reserve Ratio?

Cash Reserve Ratio calculator uses Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100 to calculate the Cash Reserve Ratio, The Cash Reserve Ratio is a specific amount of cash that banks have to keep as a deposit with the Reserve Bank of India (RBI).The percentage of cash is fixed and has to be followed by every bank. Cash Reserve Ratio is denoted by CRR symbol.

How to calculate Cash Reserve Ratio using this online calculator? To use this online calculator for Cash Reserve Ratio, enter Cash Reserves (CR) & Net Demand & Time Liabilities (NDTL) and hit the calculate button. Here is how the Cash Reserve Ratio calculation can be explained with given input values -> 4 = (400000/10000000)*100.

FAQ

What is Cash Reserve Ratio?

The Cash Reserve Ratio is a specific amount of cash that banks have to keep as a deposit with the Reserve Bank of India (RBI).The percentage of cash is fixed and has to be followed by every bank and is represented as CRR = (CR/NDTL)*100 or Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100. Cash Reserves is the amount of cash held by the bank with the central bank & Net Demand & Time Liabilities includes payable on demand, such as current and savings accounts, as well as time liabilities, such as fixed deposits and recurring deposits.

How to calculate Cash Reserve Ratio?

The Cash Reserve Ratio is a specific amount of cash that banks have to keep as a deposit with the Reserve Bank of India (RBI).The percentage of cash is fixed and has to be followed by every bank is calculated using Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100. To calculate Cash Reserve Ratio, you need Cash Reserves (CR) & Net Demand & Time Liabilities (NDTL). With our tool, you need to enter the respective value for Cash Reserves & Net Demand & Time Liabilities and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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