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What is Statutory Liquidity Ratio?

Tuesday, June 18, 2019, 12:00 PM

What is Statutory Liquidity Ratio?

SLR or statutory liquidity ratio refers to the amount that the banks must maintain in the form of liquid assets and cash reserves with the RBI before lending to customers. SLR is a monetary policy instrument of the RBI. The banks are liable to pay penalty for failure on maintaining the SLR with the RBI, at a penal-rate of 3% over the bank rate.

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