Question

When did India reach its record low Statutory Liquidity Ratio (SLR) of 18.00%?

• A. March 2024
• B. January 2024
• C. November 2024
• D. February 2015

Answer 1

Answer:

C. November 2024

India reached its record low Statutory Liquidity Ratio (SLR) of 18.00% in November 2024. Statutory liquidity ratio (SLR) is the reserve requirement that commercial banks are required to maintain in the form of cash, gold reserves, PSU Bonds, and RBI approved securities before providing credit to the customers. When SLR is reduced, the commercial banks can use more money to lend its customers. If the lending rate is reduced by the bank to some extent, their profitability won't be hampered in case of a reduction in SLR rate.