The Reserve Bank of Asia has mandated every bank to own a proportion that is specific of by means of liquid assets, excluding the money reserve ratio called the Statutory Liquidity Ratio (SLR).

The Reserve Bank of Asia has mandated every bank to own a proportion that is specific of by means of liquid assets, excluding the money reserve ratio called the Statutory Liquidity Ratio (SLR).

Let’s explore the significance of SLR through the after topics.

1. How can Statutory Liquidity Ratio work?

Every bank should have a specified part of their demand that is net and Liabilities (NDTL) in the shape of money, gold, or any other fluid assets because of the day’s end. [Read more…]