Economics · Monetary Policy
A higher Statutory Liquidity Ratio (SLR) requirement imposed by the RBI generally leads to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Higher foreign direct investment inflows
- 2Constrained bank lending capacity to the private sector✓
- 3Reduced government borrowing from the market
- 4Greater credit expansion by commercial banks
Correct answer
Constrained bank lending capacity to the private sector
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