Economics · Banking and Monetary Policy
With reference to Statutory Liquidity Ratio (SLR) in the Indian banking system, consider the following statements: I. It represents the proportion of a bank's net demand and time liabilities that must be maintained in the form of specified liquid assets. II. The requirement serves as a tool to regulate credit expansion in the economy and strengthen the financial stability of banks. III. Certain short-term government securities, including Cash Management Bills (CMBs), are treated as eligible assets for meeting SLR obligations. IV. State Co-operative Banks are not required to comply with the statutory liquidity requirements applicable to scheduled commercial banks. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I and II only
- 2II and III only✓
- 3I, III and IV
- 4II, III and IV
Correct answer
II and III only
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