2014 Economy - Monetary Policy

In the context of Indian economy, which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements'?

  • To enable the Central Bank to control the amount of advances the banks can create
  • To make the people's deposits with banks safe and liquid
  • To prevent the commercial banks from making excessive profits
  • To force the banks to have sufficient vault cash to meet their day-to-day requirements

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    2014 UPSC Economy PYQ | UPSC Insights | UPSC Insights