BANKING • 3 MIN REVISION
CRR vs SLR
A fast, exam-friendly comparison of two bank reserve concepts.
The core distinction
CRR is the portion of a bank’s net demand and time liabilities that is maintained as cash balance with the Reserve Bank of India. SLR is maintained by the bank itself in specified liquid assets, subject to the applicable regulatory framework.
| Point | CRR | SLR |
|---|---|---|
| Where? | With RBI | Maintained by the bank |
| Memory cue | C → Central bank | L → Liquid assets |
| Exam trap | Do not describe it as the bank’s own stock of liquid securities. | Do not say it is simply a cash balance deposited with RBI. |
🧠 Memory cue: CRR → C = Central. Use the cue only after you understand the distinction.
Quick check: Which one is maintained with RBI?
CRR.
Quick check: Are CRR and SLR identical forms of reserve?
No. Their form and maintenance differ.
Current-rate warning: Policy and statutory rates can change. A static learning page should not hard-code a “current” rate unless it is maintained and dated from an official source.