Economics · Banking and Monetary Policy

What does Statutory Liquidity Ratio (SLR) signify in the context of commercial banking in India?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The rate at which commercial banks borrow short-term funds from the central bank
2The percentage of net demand and time liabilities that banks must maintain in safe and liquid assets like gold or government securities✓
3The mandatory percentage of reserves that banks must deposit with the RBI in cash
4The ratio of a bank's total cash reserves to its foreign currency holdings

Correct answer

The percentage of net demand and time liabilities that banks must maintain in safe and liquid assets like gold or government securities

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