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Statutory Liquidity Ratio or SLR is the 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.
The statutory liquidity ratio is the minimum percentage of deposits that a commercial bank is required to maintain in the form of liquid cash and securities. Know its definition, objectives, components, and uses on Groww.
Jun 6, 2024 · Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities. However, these deposits are maintained by the banks themselves and not with the RBI or Reserve Bank of India. Current SLR in India – 18.00%.
Aug 21, 2024 · What is the Statutory Liquidity Ratio (SLR)? The statutory liquidity ratio (SLR) is the minimum percentage of liquid assets that every commercial bank needs to retain. It acts as a reserve and comprises cash, securities, and gold.
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.
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.
Definition: The ratio of liquid assets to net demand and time liabilities (NDTL) is called statutory liquidity ratio (SLR). Description: Apart from Cash Reserve Ratio (CRR), banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities.
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.
In Indian banking terms, statutory liquidity ratio (SLR) refers to the minimum reserve requirement that needs to be maintained by commercial banks in the nation. This term is used by the Indian government. The word 'statutory' indicates that it is mandatorily and legally required.
The Statutory Liquidity Ratio (SLR) refers to the mandated percentage of a bank’s net demand and time liabilities that it must maintain in the form of specified liquid assets, such as cash, gold, or government-approved securities.
