Cash reserves with RBI is NOT a source of funds of a commercial bank.s.The Reserve Bank of India hereby notifies that as of the reporting fortnight beginning May 21, 2022.
Every bank shall be required to maintain an average Cash Reserve Ratio of 4.50 percent of its net demand and time liabilities pursuant to Circular No. 38/12.01.001/2020-21 dated February 5, 2021.Cash reserves are the funds that a person or business has on hand to meet immediate financial demands. Short-term investments that provide clients rapid access to their money typically come with a lower rate of return and are known as cash reserves.The money a business or person has on hand to cover short-term and emergency funding needs is referred to as cash reserves. Cash reserves are short-term investments that give clients immediate access to their funds, frequently in exchange for a lower rate of return.
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