What is Statutory Liquidity Ratio (SLR)?


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It is the ratio defined by the Reserve Bank of India. Due to their banker has to keep their deposit in the form of liquid assets.  Liquid assets include government deposits, treasury bills and other defined by the RBI.  If this rate is increased then the commercial banks have less funds  to give to public and if this ratio is decrease the funds available with commercial banks rise to give as loans.


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