Question

The System where RBI has to keep a minimum reserve of Rs 200 Crores comprising of gold coin and gold bullion and foreign currencies is known as

• A. Statutory Liquidity Ratio
• B. Minimum Reserve System
• C. Cash Reserve Ratio
• D. Reserve Requirement System

Answer 1

Answer:

B. Minimum Reserve System

Minimum Reserve System:

• Under the Minimum Reserve System, the RBI has to keep a minimum reserve of Rs 200 Crores comprising of gold coin and gold bullion and foreign currencies.
• Out of the total Rs 200 Crores, Rs 115 Crores should be in the form of gold coins or gold bullion and rest in the form of foreign currencies.
• India follows this System from 1956