Category Archives: Cashcentral

These are typically talked about when you look at the decreasing purchase of liquidity and increasing purchase of profitability

Money, defined broadly, includes money in hand and balances along with other banks like the RBI. Banking institutions hold balances because of the RBI because they are required statutorily to take action beneath the money book requirement. Such balances are known as statutory or needed reserves. Besides, banking institutions hold voluntarily supplemental income to meet with the day-to-day drawals from it by their depositors. Continue reading