Q.

CASA is basically the combination of Current account and saving account deposits with a Bank. Why do the Banks put greater emphasis on mobilizing a high CASA ratio?

A. In order to fulfill RBI stipulation for it
B. It helps reduction in average cost of funds
C. These are stable deposits
D. These help Banks maintain a healthy asset- liability ratio
E. None of the Above
Answer» B. It helps reduction in average cost of funds
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