Economics · Banking and Monetary Policy
How is Statutory Liquidity Ratio (SLR) fundamentally different from Cash Reserve Ratio (CRR)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1SLR is voluntarily imposed by the central bank, while CRR is determined by commercial banks.
- 2SLR applies to long-term reserves, while CRR applies to short-term reserves.
- 3SLR can be maintained in liquid assets like gold and government securities, while CRR must be kept as cash reserves with the RBI.✓
- 4SLR is a percentage of total assets, while CRR is a percentage of loans.
Correct answer
SLR can be maintained in liquid assets like gold and government securities, while CRR must be kept as cash reserves with the RBI.
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