What is the current statutory liquidity ratio?
18%
The current SLR, as of 24 May 2022, is 18%, however, the RBI has the authority to raise it to 40%. The higher the SLR on commercial banks, the higher restrictions placed on their liquidity and ability to inject funds into the economy.
What is statutory liquidity ratio with example?
This minimum percentage is called Statutory Liquidity Ratio. Example: If you deposit Rs. 100/- in bank, CRR being 9% and SLR being 11%, then bank can use 100-9-11= Rs. 80/- for giving loan or for investment purpose.
What is statutory liquidity ratio of RBI?
Statutory Liquidity Ratio (SLR) At present, all SCBs are required to maintain a uniform SLR of 25 per cent of the total of their demand and time liabilities in India as on the last Friday of the second preceding fortnight which is stipulated under section 24 of the B.R. Act, 1949.
What is the ratio of SLR and CRR?
Cheers! Latest update RBI Monetary Policy Dec 2020 : The current rates as per RBI Monetary Policy are – SLR is 21.50%, Repo rate is 4.00%, Reverse Repo rate is 3.35%, MSF rate is 4.25%, CRR is 3% and Bank rate is 4.65%.
When was SLR last changed?
This percentage is fixed by the Reserve Bank of India. The maximum limit for the SLR was 40% in India. Following the amendment of the Banking regulation Act (1949) in January 2017, the floor rate of 20.75% for SLR was removed. From April 11, 2020, rate of SLR is 18.00%.
What is current SLR rate 2020?
Current Key Rates
| Date | Repo Rate | SLR |
|---|---|---|
| May 2020 | 4% | 18% |
| Mar 2020 | 4.4% | 18.25% |
| Feb 2020 | 5.15% | 18.25% |
| Oct 2019 | 5.15% | 19.5% |
What is the purpose of SLR?
The primary objective of the SLR rate is to maintain liquidity in financial institutions operating in the country. Besides this, the SLR rate also helps: Control credit flow and inflation. Promote investment in government securities.
Who decides SLR?
the Reserve Bank of India (RBI)
6. What is SLR rule who decides SLR? SLR is the percentage between the time liabilities and net assets which the lenders must maintain at the end of the day. SLR is decided by the Reserve Bank of India (RBI).
Who fixes statutory liquidity ratio in India?
the RBI
The SLR is fixed by the RBI. CRR (Cash Reserve Ratio) and SLR have been the traditional tools of the central bank’s monetary policy to control credit growth, flow of liquidity and inflation in the economy. The SLR was prescribed by Section 24 (2A) of Banking Regulation Act, 1949.
When was SLR introduced in India?
Chronology Of Events
| Bank Rate | Statutory Liquidity Ratio** | |
|---|---|---|
| 1 | 2 | 2 |
| 3.5 | 5/7/1935 | 16-03-1949 |
| 3 | 28-11-1935 | |
| 16-09-1964 |
What is CRL and SRL?
SLR. CRR is the deposit banks’ ratio at RBI. SLR is the ratio of the deposit that the bank needs to keep with them.
What is the current SLR 2021?
The current rates as per RBI Monetary Policy are: SLR rate is 18.00%, Repo rate is 4.90%, Reverse Repo rate is 3.35%, MSF rate is 5.15%, CRR rate is 4.50% and Bank rate is 5.15%.
What is the maximum limit of SLR?
40%
The maximum limit of SLR is 40% and minimum limit of SLR is 0 In India, Reserve Bank of India always determines the percentage of SLR. There are some statutory requirements for temporarily placing the money in government bonds. Following this requirement, Reserve Bank of India fixes the level of SLR.
When did SLR change last?
The current Statutory Liquidity Ratio (SLR) is 18.00% The Statutory Liquidity Ratio (SLR) last witnessed a change in its level on April 11, 2020 when it declined by 0.25% from its previous level of 18.25%.
What is the impact of SLR?
The SLR regulates credit growth and inflation in the Indian economy. If SLR increases, institutions can lend less, hence there is less liquidity in the economy and there is less upward pressure on inflation.
Where is SLR kept?
Difference between SLR & CRR
| Statutory Liquidity Ratio (SLR) | Cash Reserve Ratio (CRR) |
|---|---|
| In the case of SLR, the securities are kept with the banks themselves, which they need to maintain in the form of liquid assets | In CRR, the cash reserve is maintained by the banks with the Reserve Bank of India. |
What is the CRR rate in India 2022?
On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (June 8, 2022) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 4.90 per cent with immediate effect.
What is minimum SLR?
The maximum limit of SLR is 40% and minimum limit of SLR is 0 In India, Reserve Bank of India always determines the percentage of SLR. There are some statutory requirements for temporarily placing the money in government bonds.