Economics · Banking and Monetary Policy
Under Statutory Liquidity Ratio (SLR), which of the following requirements must be met?
- 1Commercial banks maintain a certain percentage of their total assets in cash with the RBI.
- 2RBI maintains a certain percentage of its total assets in liquid form.
- 3RBI borrows a certain percentage of total assets in liquid form from commercial banks.
- 4Commercial banks maintain a certain percentage of their Net Demand and Time Liabilities (NDTL) in liquid assets.✓
Correct answer
Commercial banks maintain a certain percentage of their Net Demand and Time Liabilities (NDTL) in liquid assets.
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