Statutory Liquidity Ratio

Q.  Banks are required to maintain SLR under which act?
- Published on 15 Feb 17

a. Section 24 of the Banking Regulation Act
b. Section 35 of the Negotiable Instrument Act, 1881
c. Section 24 of RBI Act
d. Section 40 of Indian Contract Act, 1872

ANSWER: Section 24 of the Banking Regulation Act
 
SLR is governed by the provisions of Section 24 of the Banking Regulation Act.

There is no minimum stipulation on SLR (earlier there used to be a minimum stipulated SLR of 25% - but this was removed with an amendment to the Banking Regulation Act in 2007).

However, SLR cannot exceed 40%.

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