Q1: What is the Statutory Liquidity Ratio (SLR)?
- Definition: The SLR requires banks to hold a portion of their deposits in RBI-approved securities, gold, and cash. The RBI sets the rate, which is 18% in 2023.
- Applicability: It applies to Commercial Banks, Urban Cooperative Banks (UCBs), and State Cooperative Banks/Central Cooperative Banks (StCBs/CCBs) with a range from 0% to 40%.
- Objectives: The SLR influences money supply and interest rates, ensures financ...
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