GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Social Lending Ratio
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Separate Lending Rate
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Statutory Liquidity Ratio
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Scheduled Liquidity Rate
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Detailed explanation-1: -SLR stands for Statutory Liquidity Ratio, which is a percentage of deposits that banks are required to maintain in the form of liquid assets such as cash, gold, and government securities. It is a monetary policy tool used by the Reserve Bank of India (RBI) to regulate the money supply in the economy.
Detailed explanation-2: -The current SLR rate is 18.00% as of April 2022. The RBI decides the SLR rate and reserves all rights to increase and decrease it. The current SLR rate is 18.00% as of April 2022.
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.