What Does Vault Cash Mean

Meaning of vault cash in English paper money and coins that are kept by a bank to use to pay customers exchanging cheques for money, etc.

What is vault cash of the commercial banks?

Vault cash (of a commercial bank): paper currency and current coins owned by the commercial bank and (generally) held in the bank vaults of the commercial bank. Borrowed reserves: bank reserves that were obtained by borrowing from the central bank.

Why do banks keep vault cash?

“Vault cash” is the money that a bank will keep on premises (which is usually kept in their vault) to deal with their day-to-day cash needs. The bank must have a certain amount of cash on hand in order to deal with these types of every day transactions.