BANKING AFFAIRS

Detailed explanation-1: -Every bank must have a particular portion of their Net Demand and Time Liabilities (NDTL) in the form of cash, gold, or other liquid assets by the end of the day. The ratio of these liquid assets to the demand and time liabilities is called the Statutory Liquidity Ratio (SLR).

Detailed explanation-2: -Net Demand and Time Liabilities (NDTL): It is the difference between the sum of demand and time liabilities (deposits) of a bank (with the public or the other bank) and the deposits in the form of assets held by the other banks.

Detailed explanation-3: -The maximum limit of SLR is 40% and minimum limit of SLR is 0 In India, Reserve Bank of India always determines the percentage of SLR. There are some statutory requirements for temporarily placing the money in government bonds. Following this requirement, Reserve Bank of India fixes the level of SLR.

Detailed explanation-4: -17. SLR assets shall be maintained by banks as under: A. For Scheduled Commercial Banks (Including Regional Rural Banks), Local Area Banks, Small Finance Banks and Payments Banks.

Detailed explanation-5: -SLR or the Statutory Liquidity Ratio is the minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities.