BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash in Hand
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Gold owned by the bank
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Balance with RBI
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All of the above
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Detailed explanation-1: -Q. Which of the following counts under SLR? Notes: To comply with the SLR, the banks can keep any of the following: Cash in hand, Gold owned by the bank, Balance with RBI, Net balance in current account.
Detailed explanation-2: -Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities. However, these deposits are maintained by the banks themselves and not with the RBI or Reserve Bank of India.
Detailed explanation-3: -This percentage is called the Statutory Liquidity Ratio (SLR). In our example, if the RBI mandates the banks to maintain an SLR of 20%, then the bank will keep Rs 2 Lakh in liquid assets and will be able to loan out only the remaining Rs 8 Lakh.
Detailed explanation-4: -The maximum limit of SLR is 40% and the minimum limit of SLR is 0 In India, the RBI always decides the percentage of SLR. If the bank fails to control the required level of the statutory liquidity ratio, then it becomes responsible to pay penalty to Reserve Bank of India (RBI). The current SLR rate in India is 18.25%.