Statutory Liquidity Ratio (SLR)
The share of deposits banks must hold in safe liquid assets.
Definition
The Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a bank must maintain in the form of liquid assets like cash, gold or approved government securities, before offering credit to customers.
Example
With an 18% SLR, a bank keeps ₹18 of every ₹100 of deposits in liquid assets like G-Secs.
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