The full form of 'SLR' is-

The correct answer is Statutory Liquidity Ratio.

In News

• The Reserve Bank of India (RBI) often adjusts the SLR to control the liquidity in the economy.

Key Points

• The Statutory Liquidity Ratio (SLR) is a term used in the banking and finance sector in India.
• It is the minimum percentage of deposits that a commercial bank has to maintain in the form of cash, gold, or other approved securities.
• SLR is determined by the Reserve Bank of India (RBI) in order to control the expansion of bank credit.
• Statutory Liquidity Ratio helps in ensuring the solvency of the banks and controlling inflation.

Additional Information

• Statutory Liquidity Ratio (SLR)
  • SLR is used to control inflation and fuel growth by increasing or decreasing the money supply.
  • It is a form of control over the growth of bank credit.
  • By adjusting the SLR, the RBI can influence the money supply in the economy.
  • The current SLR rate can be found on the official website of the Reserve Bank of India.
• Other Important Terms
  • Cash Reserve Ratio (CRR): The percentage of a bank's total deposits that must be maintained with the central bank in the form of liquid cash.
  • Repo Rate: The rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
  • Reverse Repo Rate: The rate at which the central bank borrows money from commercial banks within the country.
  • Bank Rate: The rate charged by the central bank for lending funds to commercial banks.