Question

Statutory Liquidity Ratio (SLR) refer to the __________________________.

• A. Percentage of secret reserves which acts as a cushion for nationalized banks.
• B. Percentage of reserve banks are required to park with RBI approved instruments
• C. Ratio between current account and fixed account deposits of banks
• D. Percentage of reserve banks are required to utilize only for forex transactions.
• E. Percentage of reserves meant for priority sector lending.

Answer 1

The correct option is B Percentage of reserve banks are required to park with RBI approved instruments

Statutory Liquidity Ratio (SLR) is the specified reserve which the banks are required to maintain with the RBI in the form of government securities, specified bonds and approved securities.