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Consider the following statements regarding Statutory Liquidity Ratio (SLR)?
1. It is the ratio of total deposit of the bank which is kept with RBI.
2. It is maintained in non-cash form.
1. It is the ratio of total deposit of the bank which is kept with RBI.
2. It is maintained in non-cash form.
Which of the above statement/s is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Consider the following statements regarding Statutory Liquidity Ratio ...
The statutory liquidity ratio (SLR) is the ratio (fixed by the RBI) of the total deposits of a bankwhichis to be maintained by the bank with itself in non-cash form prescribed by theGovernment.
The cash reserve ratio (CRR) is the ratio (fixed by the RBI) of the total deposits of a bank inIndiawhich is kept with the RBI in cash form.
Most Upvoted Answer
Consider the following statements regarding Statutory Liquidity Ratio ...
Explanation:
Statutory Liquidity Ratio (SLR) is a monetary policy tool used by the Reserve Bank of India (RBI) to maintain liquidity in the banking system. The SLR is the percentage of total deposits that banks are required to maintain in the form of liquid assets such as cash, gold or government securities before providing credit to customers.
Statement 1: It is the ratio of total deposit of the bank which is kept with RBI.
This statement is incorrect. SLR is the ratio of total deposits that banks are required to maintain in the form of liquid assets such as cash, gold or government securities.
Statement 2: It is maintained in non-cash form.
This statement is correct. Banks are required to maintain their SLR in the form of non-cash assets such as government securities or gold.
Therefore, the correct answer is option B - 2 only.
Statutory Liquidity Ratio (SLR) is a monetary policy tool used by the Reserve Bank of India (RBI) to maintain liquidity in the banking system. The SLR is the percentage of total deposits that banks are required to maintain in the form of liquid assets such as cash, gold or government securities before providing credit to customers.
Statement 1: It is the ratio of total deposit of the bank which is kept with RBI.
This statement is incorrect. SLR is the ratio of total deposits that banks are required to maintain in the form of liquid assets such as cash, gold or government securities.
Statement 2: It is maintained in non-cash form.
This statement is correct. Banks are required to maintain their SLR in the form of non-cash assets such as government securities or gold.
Therefore, the correct answer is option B - 2 only.
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Consider the following statements regarding Statutory Liquidity Ratio (SLR)?1. It is the ratio of total deposit of the bank which is kept with RBI.2. It is maintained in non-cash form.Which of the above statement/s is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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