Option 1 -> Cash Reserve Ratio is the minimum percentage of deposits banks must keep with the central bank.
Option 2 -> Repo Rate is the interest rate at which RBI lends to commercial banks.
Option 3 -> Bank Rate is the long-term lending rate charged by RBI to banks.
Option 4 -> Statutory Liquid Ratio is the percentage of deposits banks maintain as liquid assets with themselves, not with RBI.
Hence, Option 1: Cash Reserve Ratio -> CRR is the mandatory reserve that commercial banks must maintain with the central bank as a percentage of their net demand and time liabilities (deposits). This is a statutory requirement and serves as a monetary policy tool to control liquidity in the economy. When CRR increases, banks have less money to lend, reducing money supply, and vice versa. -> correct