Banks are required to maintain a certain ratio between their cash in hand and total assets. What is this called?

Statutory Bank Ratio (SBR)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Statutory Liquid Ratio (SLR)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Central Bank Reserve (CBR)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Central Liquid Reserve (CLR)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Statutory Liquid Ratio (SLR)

Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities before providing credit to the customers. Here by approved securities we mean, bond and shares of different companies.

Suggest Corrections

Similar questions

For Cash reserve ratio (CRR) requirements, banks have to keep/maintain

Join BYJU'S Learning Program