question_answer

RBI prescribes the cash reserve ration to be maintained by banks as part of prudential norms. In what way is this cash reserve maintained by the banks?

A)  It is kept as reserves of gold with RBI     

B)  It is maintained as cash with RBI

C)  Each bank keeps the reserve in their respective head offices

D)  It is maintained as investments in government bonds                  

E)  None of these