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Write a short note on Reserve Bank of India

The Reserve Bank of India is India’s central bank. It is the apex monetary institution which supervises, regulates controls and develops the monetary and financial system of the country. The Reserve bank was established on April 1, 1935 under the Reserve Bank of India Act, 1934.

What is the limitations of Variable Cash Reserve Ratio?

The following are the limitations of the method of variable cash reserve ratio, such as this method is not effective when the commercial banks keep very large excessive cash reserves. In such a case ever if cash reserve ‘ratio is raised, ample reserves remain after satisfying the minimum requirements.

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