Economics · Monetary Policy
Statutory Liquidity Ratio (SLR) is defined as:
- 1The ratio between the money a bank holds and the money it has lent.
- 2The minimum percentage of deposits a commercial bank must maintain in the form of liquid cash, gold, or approved securities.✓
- 3The interest rate at which the RBI lends short-term funds to commercial banks.
- 4A provision used in lines of credit as a sublimit on the maximum loan amount.
Correct answer
The minimum percentage of deposits a commercial bank must maintain in the form of liquid cash, gold, or approved securities.
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