SLR is a required ratio that mandates banks to hold a certain percentage of their NDTL in liquid assets, including cash in hand (vault cash), gold, and approved securities.
The banks are required to maintain a certain ratio between their cash in hand and total assets. This ratio is known as :
Asked in UPSC CAPF 2023 · UPPSC Upper Mains 2007 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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