RBI Reduce SLR

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

  1. India’s GDP growth rate increases drastically
  2. Foreign Institutional Investors may bring more capital into our country
  3. Scheduled Commercial Banks may their lending rates
  4. It may drastically reduce the liquidity to the banking system
Monis Rasool Professor Asked on 26th August 2015 in Economics.
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  • 1 Answer(s)

    Answer: (4) It may drastically reduce the liquidity to the banking system.

    Anurag Mishra Professor Answered on 26th August 2015.
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