Search results
Prepare SLR or the Statutory Liquidity Ratio for UPSC Exams. Know what is SLR, it's objective and importance in the Indian Economy. Know the current Statutory Liquidity Ratio in India and its effects on inflation.
Jun 6, 2024 · SLR ensures banks have a certain portion of their liabilities as liquid assets, regulated by RBI. It helps stabilize the economy by controlling bank credit and ensuring solvency. SLR differs from Cash Reserve Ratio (CRR) and impacts base rates and lending.
Mar 19, 2023 · Statutory Liquidity Ratio (SLR) is a requirement that commercial banks have to keep a certain proportion of their demand and time deposits as liquid assets in their vault. In the context of SLR, liquid assets mean assets in the form of cash, gold and approved securities (government securities).
Everything you should know about CRR and SLR rates and their differences . Key Takeaways. CRR is a reserve maintained by banks with the RBI. It is a percentage of the banks' deposits maintained in cash form. SLR is an obligatory reserve that commercial banks must maintain themselves.
SLR full form stands for Statutory Liquidity rRatio. It is a monetary policy tool that the Reserve Bank of India (RBI) uses to assess the liquidity at the banks’ disposal. SLR requires banks to keep a certain amount of their money invested in specific central and state government securities.
Statutory Liquidity Ratio or SLR is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities. It is basically the reserve requirement that banks are expected to keep before offering credit to customers.
Consequent upon amendment to the Section 24 of the Banking Regulation Act, 1949 through the Banking Regulation (Amendment) Act, 2007 replacing the Regulation (Amendment) Ordinance, 2007, effective January 23, 2007, the Reserve Bank can prescribe the SLR for SCBs in specified assets.
In India, the Statutory liquidity ratio (SLR) is the Government term for the reserve requirement that commercial banks are required to maintain in the form of cash, gold reserves, Govt. bonds and other Reserve Bank of India (RBI)- approved securities before providing credit to the customers. The SLR to be maintained by banks is determined by ...
Simply put, SLR is the ratio of liquid assets that a financial institution must keep to its NDTL. To calculate SLR, this is the formula to use: SLR = (Liquid Assets / (Time + Demand Liabilities)) * 100.
Dec 29, 2015 · The RBI Act instructs that all commercial banks (and some other specified institutions) in the country have to keep a given proportion of their demand and time deposits (NDTL or net demand and time liabilities) as liquid assets in their own vault. This is called statutory liquidity ratio.
