Explain the following instruments which Reserve Bank of India uses for implementing its monetary policy: Statutory Liquidity Ratio (SLR)
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2020
Explain the following instruments which Reserve Bank of India uses for implementing its monetary policy: Statutory Liquidity Ratio (SLR)
Answer & Explanation:
Statutory Liquidity Ratio (SLR): The share of NDTL that a bank is required to maintain in safe and liquid assets, such as, unencumbered government securities, cash and gold. Changes in SLR often influence the availability of resources in the banking system for lending to the private sector.
Topics: Reserve Bank of India (RBI)
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