Q. What is the purpose of the Statutory Liquidity Ratio (SLR)?
Answer: To regulate the liquidity in banks by mandating them to hold a certain percentage of their net demand and time liabilities in government-approved securities
Notes: The Statutory Liquidity Ratio is the percentage of a bank’s net demand and time liabilities that it must maintain in the form of liquid assets, such as cash, gold, or government-approved securities.