Main objectives of CRR and SLR is to ensure:
i) Liquidity position of Bank
ii) Financial position of Bank.
iii) Profit position of Bank

Only (i) is correct.

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Only (ii) is correct.

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Only (iii) is correct.

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All are correct.

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Solution

The correct option is A Only (i) is correct.
Statutory Liquidity Ratio (SLR) refers to liquid assets that the commercial banks must hold on daily basis as a percentage of their total deposits. SLR is determined by the central bank and is a legal requirement to be fulfilled by the commercial banks.

Cash Reserves Ratio (CRR) refers to the proportion of total deposits of the commercial banks which they must have keep as cash reserves with the central bank.
The main objective of both the ratio is to ensure that liquidity in maintained by the commercial banks all the time.

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Q. Consider the following statements with regard to SLR:
1) To meet SLR, commercial banks can use cash only.
2) SLR is maintained by the banks with themselves.
3) SLR restricts the banks leverage in pumping more money into the economy.
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Main objectives of CRR and SLR is to ensure:i) Liquidity position of Bankii) Financial position of Bank.iii) Profit position of Bank

Main objectives of CRR and SLR is to ensure:
i) Liquidity position of Bank
ii) Financial position of Bank.
iii) Profit position of Bank