Multiple choice

The Reserve Bank of India keeps on changing correcting various indicators/rates/ratios applicable to the banking industry. What at present is the Statutory Liquidity Ratio (SLR)?

  1. 7%

  2. 12%

  3. 25%

  4. 33%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Statutory Liquidity Ratio (SLR) at the time was 25%, meaning banks were required to maintain 25% of their net demand and time liabilities in liquid assets like cash, gold, or government securities. SLR is a monetary tool used by the RBI to control bank credit expansion and ensure liquidity. The ratio has varied over time depending on economic conditions and monetary policy objectives.

Keep practicing — related questions