Which of the following statements is correct with reference to the Cash Reserve Ratio (CRR)?

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank
B. To ensure that no bank is 'over lending'
C. This is a legal requirement and is binding on the banks
D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept.

Choose the correct answer from the options given below:

(A), (B) and (C) only

The correct answer is Option (2) → (A), (B) and (C) only

A. The RBI decides a certain percentage of deposits which every bank must keep as reserves with the central bank (Correct). This is the definition of Cash Reserve Ratio (CRR). 
B. To ensure that no bank is 'over lending' (Correct). CRR is a tool used by the RBI to control liquidity and limit over-lending by commercial banks.
C. This is a legal requirement and is binding on the banks (Correct). CRR is a statutory/legal requirement under the RBI Act.
D. Cash Reserve Ratio and Statutory Liquidity Ratio are the same concept. (Incorrect). CRR refers to reserves maintained with RBI in cash, while SLR refers to reserves maintained in the form of approved securities or gold with the bank itself, not with RBI.