Economics · Banking and Monetary Policy
How is the Statutory Liquidity Ratio (SLR) primarily distinguished from the Cash Reserve Ratio (CRR)?
- 1SLR is imposed by the central bank, while CRR is determined voluntarily by individual commercial banks.
- 2SLR applies only to long-term reserves, while CRR applies exclusively to short-term reserves.
- 3SLR applies to specified liquid assets (like gold/government securities), while CRR applies strictly to cash reserves kept with the RBI.✓
- 4SLR is a percentage of total assets, while CRR is a percentage of total loans.
Correct answer
SLR applies to specified liquid assets (like gold/government securities), while CRR applies strictly to cash reserves kept with the RBI.
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