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Question
SLR stands for ______
Options
Statutory Limit Rationing
Standard Liquid Requirement
Statutory Liquidity Ratio
Standard Limit Rationing
Solution
SLR stands for Statutory Liquidity Ratio.
Explanation:
The statutory liquidity ratio is abbreviated as SLR. It is the required minimum percentage of deposits held in liquid cash, gold, or other securities by a commercial bank. It is the minimum reserve requirement that banks must meet before extending credit to customers. The SLR is set by the RBI.
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