In India, the RBI has mandated the banks to hold 24 per cent of their net demand and time liabilities (NDTL) in a liquid portfolio under the statutory liquidity ratio (SLR) regime. What are the benefits of this system?

  1. Provides strength to Financial System
  2. Increases flow of credit to productive sectors
  3. Provides growth to Indian Economy

Which among the above is/ are correct?

[A] 1 & 2
[B] 2 & 3
[C] Only 1
[D] 1, 2 & 3

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