SLR stands for Statutory Liquidity Ratio, a policy tool implemented by central banks to ensure the liquidity and solvency of banks. Learn how SLR works, its importance, calculation, limit, and impact on the financial system. SLR stands for “Statutory Liquidity Ratio,” a term frequently seen in finance, government policies, and entrance tests. Knowing the SLR full form and its importance can help you perform well in interviews, banking awareness rounds, and school or college exams. Statutory Liquidity Ratio ( SLR ) is the percentage of a bank's net demand and time liabilities (NDTL) that it is required to maintain in the form of specified liquid assets, such as cash, gold, or government-approved securities. SLR or Statutory Liquidity Ratio is the percentage of a bank's net demand and time liabilities that the bank needs to maintain in the form of liquid assets. Know about SLR objective, components, impact and how it is different from CRR & Repo Rate.

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