Currency Deposit Ratio (CDR) is the ratio of money held by the public in currency to that they hold in bank deposit. CDR= CU\DD
The Reserve Deposit Ration (RDR) banks hold a part of the money people keep in this bank deposit as reserve money. Reserve money consists of two things. Vault cash in banks and deposits of commercial banks with RBI. It is the proportion of total deposits commercial banks keep as reserve.
