Which out of the following is/are correct regarding Statutory Liquidity Ratio (SLR)?
a) Section 42 of RBI Act, 1934 lays foundation for maintaining SLR by scheduled commercial bank with RBI.
b) Section 24 of the Banking Regulations Act, 1949 provide powers to RBI to specify SLR on banks
c) At present SLR is 19.50 per cent of NDTL
d) Qualified liquid assets for purpose of SLR are: unencumbered government and other approved securities, gold, cash and excess CRR balance
Select the correct answer from following options:
Answer: B
In terms of Section 24 of the Banking Regulations Act, 1949, scheduled commercial banks have to invest in unencumbered government and approved securities certain minimum amount as statutory liquidity ratio (SLR) on a daily basis. At present, SLR is 23 per cent of the NDTL. In addition to investment in unencumbered government and other approved securities, gold, cash and excess CRR balance are also treated as liquid assets for the purpose of SLR