Current SLR (Statutory Liquidity Ratio) - General Knowledge Today

Current SLR (Statutory Liquidity Ratio)

As per Section 24 (2A) of Banking Regulation Act 1949, every banking company in India has to maintain equivalent to an amount which shall not at the close of the business on any day be less than 23% of the total of its net demand and time liabilities. The components of SLR are Cash in hand, Gold owned by the bank, Balance with RBI, Net balance in current account & Investment in Government securities. SLR has to be maintained at the close of business on every day.

Please note that The CRR and SLR have been the traditional instruments of Reserve Bank of India's monetary control policy. CRR indicates the quantum of cash that banks are required to keep with the Reserve Bank as a proportion of their net demand and time liabilities (NDTL). SLR prescribes the amount of money that banks must invest in securities issued by the government. The following graph shows the history of changing SLR in India.


The above chart shows that Initially SLR was 20% and it was maintained at the same rate for at least 15 years and then was changed in 5 years in 1970. The SLR was maximum during the first two three years of 1990s when India’s economy was struggling.

    It was maximum at 38.5% in September 1990 and remained till 1992.
    After that it was gradually brought down. Since the economic slowdown it was agin increases by just 1% and it was stagnant at 25% since 2009, when in December 2010, it was brought down to 24%. In July 2012, RBI decreased the SLR from 24% to 23%. Please note that RBI is empowered to raise the SLR of the scheduled commercial Bank till 40%.

Advertisement

Last Updated: November 22, 2013

Comments

  1. sushil chand says:

    Very good nd usefull data collection.

  2. pooja says:

    excellent site..my search ended here..really of gr8 help..thanks a lot for taking pains and updating current affairs.

  3. kanika says:

    this site will soon gain impetus becoz of its useful data

  4. Karishma says:

    gr8 wrk.this site is helping me a lot.

  5. Bhupndra Thakre says:

    Its a Very good information For banking Prepration student Grt.

  6. Kranti Borade says:

    It is a very good site .You are doing very good job . This site helpful in any competative exam.

  7. SAGAR GAIKWAD says:

    its really a helpful site and i think we almost get all the information of competitve exams. thanks

  8. Peruaml S says:

    It is really a helpful site.

  9. hema joshi says:

    this is indeed a very gud site.............it is really helpful for prepairing for any kind of competitive exams especially banks........pls carry on posting new events n articls.......:)

  10. pradeep kumar says:

    its very helpfull site thanks for up dateing

  11. pragya says:

    This site is really very useful for students preparing 4 comptitive exams.....thanx to whole team associated with it :)

  12. Nishant Kumar says:

    Awesome Collection.

  13. sush2811 says:

    this site is very usefull for those students who are studying of competative exam of any kind... thanx for who made this site and upadating knowldge providing to us... :)

  14. sushil says:

    gud site... thanx to all member who connect to this site

  15. kailash says:

    thnks a lot gk today....

  16. manju previn says:

    thankz very much gk 2dy. Really helpful 2 all

  17. jonathan says:

    Intrinsic information are drowning on this GKtoday.

  18. Brijesh says:

    Really This site is excellent site i foreever seen.

    Thanks to all team member who r running this site.

  19. jaansmeet jain says:

    really this site is so very very excellent site,
    I forever seen.
    thanx to all members, who connect to this site.

  20. veeranna says:

    Thank u....GKTODAY

  21. akhand pratap says:

    its very good attempt for all examinee of banking ,,,,,,,,,,thanks a lot
    akhand pratap

  22. parmesh says:

    Great site, lots of help, great work.

    thanks a lot.....

  23. saroj says:

    many thanks for this site, which helps in many ways..

  24. dev chauhan says:

    i want to thanks this site , a lots of help

  25. prem singh chauhan says:

    current SLR(statutory liquidity raito) rate is 23% as announced by RBI governor D.Subbarao on 31st July 2012 and the minimum limit for it is 23% since 2007 and maximum limit is 40% as mentioned above.
    Hope this information would be helpful for you and kindly correct me ,if i'm wrong

  26. Karan says:

    SLR is now 23% asannounced by RBI.Our blog is updated till Feb2012.soon we will correct it.

  27. Madhavi says:

    Thank you very much sir..........now i am very cleared about banking terminology with definitions.really i didn't get confuse on banking awareness in my interview,it is very useful site for BANKING ASPIRANTS
    especially non banking(science)students.

  28. sushant kharate says:

    but slr has limit up to 25 to 40 % s it right?

  29. Chachuragavender says:

    Very useful for hsee exam

  30. bapit says:

    gr8 job by gk2day !!!!
    thank you for all your helps

  31. sunny arora says:

    sunn

  32. supriya says:

    thumbs up!!!!
    keep it up....

  33. vasanthraj says:

    yours e-contribution for nations progress is laudable.
    i am deeply greatful of this site and who maintains this,thank you so much sir..i love gktoday...

  34. Mahfooz says:

    Simply great... convincing explanation of a complex concept.....thanx...

  35. tanu bajpai says:

    convicing language....i hope the best site ever i have seen...

  36. Dhanalakshmi says:

    My search for current-affairs sites ended here after I landed here...one-stop for the current affairs...excellent going...keep up the spirit...

  37. Rajkumar says:

    useful information and kindly ubdate new information and keep going your spirit..........