Question

    Which statement is NOT correct regarding Statutory

    Liquidity Ratio (SLR)?
    A To meet SLR, commercial banks can use cash only Correct Answer Incorrect Answer
    B SLR is maintained by the banks with themselves Correct Answer Incorrect Answer
    C SLR restricts the banks' leverage in pumping more money into the economy Correct Answer Incorrect Answer
    D Increasing SLR will reduce money in the economy Correct Answer Incorrect Answer
    E None of the Above Correct Answer Incorrect Answer

    Solution

    SLR - Every bank in India is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities (NDTL) as liquid assets in the form of cash, gold and un-encumbered approved securities

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