Government Approved Securities before Providing Credit to Customers

This refers amount that the commercial banks require to maintain in the form of gold or government approved securities before providing credit to customers:

  1. Statutory Liquidity Ratio
  2. Cash Reserve Ratio
  3. Reverse Repo Rate
  4. Bank Rate
Monis Rasool Professor Asked on 18th September 2015 in Economics.
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    Statutory Liquidity Ratio

    Statutory Liquidity Ratio refers amount that the commercial banks require to maintain in the form of gold or government approved securities before providing credit to customers. Statutory Liquidity Ratio (SLR) every bank is required to maintain in India at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and unencumbered approved securities.

    Monis Rasool Professor Answered on 19th September 2015.
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