Multiple choice

As per the reports in the financial newspapers the RBI, w.e.f February, has decided to pay some interest on the 'cash reserve deposits' kept with it by various banks. What will be the rate of interest on such deposits?

  1. 0.5%

  2. 0.75%

  3. 1%

  4. 1.25%

  5. None of these
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A Correct answer
Explanation

In early 2007, the Reserve Bank of India (RBI) decided to pay interest on cash reserve deposits held by banks, with the rate set at 0.5 percent.

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