Periodically Reserve Bank of India (RBI) reviews a few SLR norms. SLR stands for?, Statutory Liquidity Ratio, Statutory Liquidity Rate, Statutory Liquidity Return, Statutory Liquidity Repo, Economics questions and answers, Study Online for free, egpage.com

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Periodically Reserve Bank of India (RBI) reviews a few SLR norms. SLR stands for?

A:	Statutory Liquidity Ratio
B:	Statutory Liquidity Rate
C:	Statutory Liquidity Return
D:	Statutory Liquidity Repo
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Description:

Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).
RBI is empowered to increase this ratio up to 40%. An increase in SLR also restrict the bank’s leverage position to pump more money into the economy.

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