The Contingent Risk Buffer (CRB) maintained by the RBI is:
- Athe money the RBI keeps aside for deposit insurance
- Bthe share of deposits that banks keep with the RBI
- Ca reserve against losses from market and other risks
- Dthe gold the RBI holds against the notes it issues
Show answer and explanation
Correct answer: (c) a reserve against losses from market and other risks
Explanation
The CRB absorbs unexpected losses from exchange rates, interest rates, monetary operations and systemic risks. (The share of deposits banks keep with the RBI is the CRR.)