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    Question

    Consider the following statements about ‘Statutory

    Liquidity Ratio (SLR)’: 1.    SLR is the percentage of NDTL that a bank must keep in safe and liquid assets such as unencumbered government securities, cash, and gold. 2.    SLR changes frequently have an impact on the availability of resources in the banking system for lending to the private sector. Which of the statements given above is/are not correct?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C Both 1 and 2 Correct Answer Incorrect Answer
    D Neither 1 nor 2 Correct Answer Incorrect Answer

    Solution

    the Statutory liquidity ratio is the Government term for the reserve requirement that commercial banks are required to maintain in the form of cash, gold reserves, Govt. bonds and other Reserve Bank of India- approved securities before providing credit to the customers.

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