If you are appointed as a Compliance Officer of The Global Bank Ltd., how you will advise to Mr. Rohit Aggarwal, Branch Manager to remove the Knowledge Gaps on Legal and Regulatory Compliance in Banks with regard to proc

As per section 42 of RBI Act, 1934, every bank included in the Second Schedule of the Reserve Bank of India Act shall maintain with the RBI an average daily balance of its total demand and time liabilities (at present 4%). RBI has power to increase the said rate by issuing notification in the Gazette of India. Cash Reserve Ratio: Cash Reserve Ratio (CRR) is the amount of funds that all Scheduled Commercial Banks (SCB) excluding Regional Rural Banks (RRB) are required to maintain without any floor or ceiling rate with RBI with reference to their total net Demand and Time Liabilities (DTL) to ensure the liquidity and solvency of Banks (Section 42(1) of RBI Act 1934). The current CRR is 4% and at present no incremental CRR is required to be maintained by the Banks. Other Important Provisions of the Act are: Section Provision Section 35 Inspection by RBI Section 26 Unclaimed Deposits Section 17 Reserve Fund Section 20 Restriction on loans and advances Section 30 {(excluding sub section (1B), (1C) and (2)} Audit Section 45ZA Nomination for payment of Depositor's etc.