The Reserve Bank of Asia has mandated every bank to own a proportion that is specific of by means of fluid assets, excluding the bucks reserve ratio called the Statutory Liquidity Ratio (SLR).
Let’s explore the significance of SLR through the after topics. 1. How exactly does Statutory Liquidity Ratio work? Every bank will need to have a specified percentage of their demand that is net and Liabilities (NDTL) by means of money, silver, or other fluid assets by the day’s end. The ratio among these fluid assets to the need and time liabilities is named the Statutory Liquidity Ratio (SLR). The Reserve Bank of Asia has got the authority to boost this ratio by as much as 40per cent. A...Read More