What is SLR ratio of a bank?

Ratio of total deposits against total investments

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Amount deposited by the bank with the Central Bank in the form of cash, gold and securities

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Amount that commercial banks are required to maintain before providing credit to customers

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Amount that commercial banks deposit with the foreign bank

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Solution

The correct option is C Amount that commercial banks are required to maintain before providing credit to customers
Statutory Liquidity Ratio (SLR) refers to liquid assets that the commercial banks must hold on daily basis as a percentage of their total deposits. This ratio should be maintained before providing credit to the customers. SLR is determined by the central bank and is a legal requirement to be fulfilled by the commercial banks.

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