Q.The cash reserve ratio (CRR) is the percentage of a commercial bank's deposits that it must keep:
(A) With itself as liquid assets
(B) With the Reserve Bank of India
(C) As loans to the government
(D) As cash in its own vaults for daily withdrawals

The defining feature of the CRR is not just that reserves are kept, but exactly where they are kept.

Section d defines the cash reserve ratio (CRR) as the minimum percentage of a bank's total deposits that it must keep as cash reserves with the RBI (not with itself).

This "where" is exactly what distinguishes the CRR from the closely related statutory liquidity ratio (SLR), which is the percentage of deposits a bank must keep with itself in the form of liquid assets such as cash, gold, and approved government securities. Option (A) therefore describes the SLR, not the CRR. …

The classic trap is mixing up CRR and SLR. Anchor it by the location: CRR reserves sit WITH the RBI; SLR reserves sit WITH th …