Question
Which of the following statements is/are TRUE with
respect to the Statutory Liquidity Ratio ? I.The SLR was prescribed by Section 24 (2A) of Banking Regulation Act, 1949. II.It represents a portion of the Net Time and Demand Liabilities (NTDL) of commercial banks that they must keep in the form of approved assets like gold, cash, government securities, or other RBI-sanctioned securities. III.To control the inflation, i.e., by decreasing the SLR percentage, the inflation in the country can be brought under control.Solution
The SLR was prescribed by Section 24 (2A) of Banking Regulation Act, 1949.It represents a portion of the Net Time and Demand Liabilities (NTDL) of commercial banks that they must keep in the form of approved assets like gold, cash, government securities, or other RBI-sanctioned securities.To control the inflation, i.e., by increasing the SLR percentage, the inflation in the country can be brought under control.
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