Statutory Liquidity Ratio (SLR)

The banks and other financial institutions in India have to keep a fraction of their total net time and demand liabilities in the form of liquid assets such as G-secs, precious metals, approved securities etc. The Ratio of these liquid assets to the total demand and time liablities is called Statutory Liquidity Ratio. This ratio was prescribed by the Section 24 (2A) of Banking Regulation Act 1949, which initially mandated for a 23% SLR.

Components of SLR

Components of SLR include 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.

Current SLR

The SLR was very high in the 1980s, and highest in first two year of 1990s, when the first Narsimham Committee recommended to bring it down from 38.5% to 25%. At present, the SLR is 21.5% (February 2015)

Difference between CRR and SLR

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. This is not kept with RBI but with banks themselves.

[table id=78 /]


39 Comments

  1. sushil chand

    July 31, 2011 at 1:49 pm

    Very good nd usefull data collection.

  2. pooja

    August 6, 2011 at 10:48 pm

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

  3. kanika

    August 19, 2011 at 1:45 am

    this site will soon gain impetus becoz of its useful data

  4. Karishma

    August 24, 2011 at 5:52 pm

    gr8 wrk.this site is helping me a lot.

  5. Bhupndra Thakre

    September 4, 2011 at 10:20 pm

    Its a Very good information For banking Prepration student Grt.

  6. Kranti Borade

    September 28, 2011 at 11:59 am

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

  7. SAGAR GAIKWAD

    November 13, 2011 at 11:02 am

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

  8. Peruaml S

    November 18, 2011 at 12:57 pm

    It is really a helpful site.

  9. hema joshi

    November 24, 2011 at 10:27 am

    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

    December 21, 2011 at 7:01 pm

    its very helpfull site thanks for up dateing

  11. pragya

    January 23, 2012 at 8:27 pm

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

  12. Nishant Kumar

    February 1, 2012 at 9:07 am

    Awesome Collection.

  13. sush2811

    March 21, 2012 at 5:44 pm

    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

    March 21, 2012 at 5:46 pm

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

  15. kailash

    March 29, 2012 at 3:36 pm

    thnks a lot gk today….

  16. manju previn

    April 17, 2012 at 4:48 pm

    thankz very much gk 2dy. Really helpful 2 all

  17. jonathan

    April 29, 2012 at 11:38 pm

    Intrinsic information are drowning on this GKtoday.

  18. Brijesh

    April 30, 2012 at 12:51 pm

    Really This site is excellent site i foreever seen.

    Thanks to all team member who r running this site.

  19. jaansmeet jain

    May 14, 2012 at 7:43 pm

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

  20. veeranna

    May 19, 2012 at 9:27 am

    Thank u….GKTODAY

  21. akhand pratap

    May 28, 2012 at 2:16 pm

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

  22. parmesh

    July 18, 2012 at 10:59 pm

    Great site, lots of help, great work.

    thanks a lot…..

  23. saroj

    July 20, 2012 at 12:52 pm

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

  24. dev chauhan

    July 28, 2012 at 12:37 pm

    i want to thanks this site , a lots of help

  25. prem singh chauhan

    August 1, 2012 at 1:02 pm

    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

    August 4, 2012 at 11:23 am

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

  27. Madhavi

    December 12, 2012 at 9:31 am

    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

    December 22, 2012 at 2:32 pm

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

  29. Chachuragavender

    February 12, 2013 at 4:19 pm

    Very useful for hsee exam

  30. bapit

    March 13, 2013 at 9:40 am

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

  31. sunny arora

    March 20, 2013 at 2:41 pm

    sunn

  32. supriya

    April 8, 2013 at 11:37 pm

    thumbs up!!!!
    keep it up….

  33. vasanthraj

    April 12, 2013 at 6:07 pm

    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

    April 23, 2013 at 11:26 pm

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

  35. tanu bajpai

    April 26, 2013 at 7:53 pm

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

  36. Dhanalakshmi

    April 27, 2013 at 4:22 pm

    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

    June 19, 2013 at 5:44 pm

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

  38. Mahendra kumar

    April 14, 2015 at 7:11 am

    Here is double rates of SLR wht is right at present
    21.5% Or 23%
    Plz tell me immdtly.

  39. bijoy

    July 7, 2015 at 4:45 pm

    Aftr ol I fond da legal site….

Leave a Reply to dev chauhan Cancel reply