Answer / shinoj.k.s.

The objectives of SLR are:

1.To restrict the expansion of bank credit.

2.To augment the investment of the banks in Government

securities.

3.To ensure solvency of banks. A reduction of SLR rates

looks eminent to support the credit growth in India.

The SLR is commonly used to contain inflation and fuel

growth, by increasing or decreasing it respectively. This

counter acts by decreasing or increasing the money supply

in the system respectively. Indian banks’ holdings of

government securities (Government securities) are now close

to the statutory minimum that banks are required to hold to

comply with existing regulation. When measured in rupees,

such holdings decreased for the first time in a little less

than 40 years (since the nationalisation of banks in 1969)

in 2005-06.While the recent credit boom is a key driver of

the decline in banks’ portfolios of G-Sec, other factors

have played an important role recently.

kindly sent last five years question set of banking to the email id writen below.

0 Answers   United Bank of India,

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0 Answers   State Bank Of India SBI,

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