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What is diffrence between Satutory Liquid Ration and Cash
Reserve Ratio?
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Answer Posted / h.r. sreepada bhagi
Statutory Liquidity Ratio(SLR) - Is the amount of liquid
assets in the form of cash, precious metals, short-term
securities, that a financial institution/bank should
maintain. In India this is stipulated by the Reserve Bank of
India & complied with by the Commercial Banks.
Cash Reserve Ratio(CRR) - The average cash balance required
to be maintained by Scheduled Commercial banks with the
Reserve Bank of India(RBI). This is decided & circulated by
the RBI.
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