Economics · Monetary Policy Instruments

Which of the following statements correctly describes the operational rules of the Statutory Liquidity Ratio (SLR) in India? Statement 1: SLR is the proportion of Net Demand and Time Liabilities (NDTL) that banks must maintain in the form of high-quality liquid assets. Statement 2: Eligible assets for SLR include cash, gold, and unencumbered investment in government and other approved securities. Statement 3: The valuation of gold held for SLR purposes is determined as per the framework prescribed by the RBI. Statement 4: SLR must be maintained by banks on a daily basis based on their NDTL as of the last Friday of the second preceding fortnight.