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In the complex framework of Indian banking and monetary policy, two terms often arise when discussing regulatory controls over liquidity and inflation: CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio). These are monetary tools mandated by the Reserve Bank of India (RBI) that directly influence the economyu2019s money supply, credit availability, interest rates, and overall financial stability. Understanding CRR and SLR is essential not only for economists and bankers but also for students, investors, and anyone interested in how a country manages its financial system.
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