Question

The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called

• A. SBR (Statutory Bank Ratio)
• B. SLR (Statutory Liquid Ratio)
• C. CBR (Central Bank Reserve)
• D. CLR (Central Liquid Reserve)

Answer 1

The correct option is B SLR (Statutory Liquid Ratio)

Explanation: SLR refers to a designated minimum proportion of its total assets to be maintained by the commercial banks in liquid assets such as gold, cash and unencumbered approved securities.