Statutory Liquidity Ratio

Statutory Liquidity Ratio Banks in India are required (by the Reserve Bank of India ) to maintain 31.5% of their demand and time liabilities in government securities and certain approved securities. These are collectively known as SLR securities. The buying and selling of these securities was the seed of the 1992 scam. The Reserve Bank of India has promised to bring down the SLR ratio to 25% in three years time

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