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    Question

    Which of the following statements is true for CRR and

    SLR?
    A It ensures liquidity of bank Correct Answer Incorrect Answer
    B It is to be maintained by PSBs only Correct Answer Incorrect Answer
    C It is the share of Profit earned by banks Correct Answer Incorrect Answer
    D only 1 and 3 Correct Answer Incorrect Answer
    E all are correct Correct Answer Incorrect Answer

    Solution

    Cash Reserve Ratio (CRR): The average daily balance that a bank is required to maintain with the Reserve Bank as a share of such per cent of its Net demand and time liabilities (NDTL) that the Reserve Bank may notify from time to time in the Gazette of India. Statutory Liquidity Ratio (SLR): The share of NDTL that a bank is required to maintain in safe and liquid assets, such as, unencumbered government securities, cash and gold.

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