Q. Which of the following is/are come/s under the definition of Statutory Liquidity Ratio (SLR)?
1.Cash
2.Gold
3.Treasury Bills of the Government of India
How many of the statements given above are correct?

[A] Only one

[B] Only two

[C] Only three

[D] None

Answer: C
Notes:

Explanation: SLR assets shall be maintained by Scheduled commercial banks and local area banks, as –

(a) Cash; or

(b) gold as defined in Section 5(g) of Banking Regulation Act, 1949 valued at a price not exceeding the current market price: or

(c) Unencumbered investment in any of the following instruments [hereinafter referred to as Statutory Liquidity Ratio securities (“SLR securities”)], namely: –

  • Dated securities of the Government of India issued from time to time under the market borrowing programme and the Market Stabilization Scheme; or
  • Treasury Bills of the Government of India; or
  • State Development Loans (SDLs) of the State Governments are issued from time to time under the market borrowing programme.

Source: https://www.rbi.org.in/commonperson/english/scripts/Notification.aspx?Id=2283

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