Glossary term

Section 24 – Statutory Liquidity Ratio (SLR)

This term has 2 definitions.

1. Banks are required to maintain a certain percentage of their net demand and time liabilities in prescribed liquid assets such as cash, gold, or approved securities. RBI sets SLR to ensure sufficient liquidity in the banking system for depositor protection and systemic resilience.

2. Banks must maintain a percentage of deposits in liquid assets like cash, gold, or approved securities as SLR. RBI sets this ratio to ensure banks have enough liquid assets to meet withdrawal demands and support monetary policy goals.

All terms beginning with S