http://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&feed=atom&action=historyStatutory Liquidity Ratio - Revision history2024-03-29T15:18:03ZRevision history for this page on the arthapediaMediaWiki 1.17.0http://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&diff=3593&oldid=prevRosemary.a at 17:03, 12 May 20162016-05-12T17:03:25Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*[http://arthapedia.in/index.php?title=Market_Stabilization_Scheme_(MSS) Market Stabilization Scheme (MSS)]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*[http://arthapedia.in/index.php?title=Market_Stabilization_Scheme_(MSS) Market Stabilization Scheme (MSS)]</div></td></tr>
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</table>Rosemary.ahttp://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&diff=3344&oldid=prevRosemary.a at 17:24, 17 April 20162016-04-17T17:24:19Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>issuance while updated list of SLR securities are available in the ‘Database on  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>issuance while updated list of SLR securities are available in the ‘Database on  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Indian Economy’ hosted in the website of the bank www.rbi.org.in.</p></div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Indian Economy’ hosted in the website of the bank www.rbi.org.in.</p></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">== Also See==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">*[http://www.arthapedia.in/index.php?title=Marginal_Standing_Facility Marginal Standing Facility (MSF)]</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">*[http://www.arthapedia.in/index.php?title=Cash_Reserve_Ratio_(CRR) cash reserve ratio (CRR)]</ins></div></td></tr>
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</table>Rosemary.ahttp://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&diff=3291&oldid=prevRosemary.a at 12:37, 12 April 20162016-04-12T12:37:30Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>per the Banking Regulations Act 1949) all Scheduled Commercial Banks in India  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>per the Banking Regulations Act 1949) all Scheduled Commercial Banks in India  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>must maintain an amount in one of the following forms as a percentage of their  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>must maintain an amount in one of the following forms as a percentage of their  </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>total DTL/NDTL;</p></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>total <ins class="diffchange diffchange-inline">Demand and Time Liabilities (</ins>DTL<ins class="diffchange diffchange-inline">) </ins>/ <ins class="diffchange diffchange-inline">Net DTL (</ins>NDTL<ins class="diffchange diffchange-inline">)</ins>;</p></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div><p>[i] Cash.<br></div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div><p>[i] Cash.<br></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[ii] Gold; or<br></div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[ii] Gold; or<br></div></td></tr>
</table>Rosemary.ahttp://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&diff=3290&oldid=prevRosemary.a at 12:32, 12 April 20162016-04-12T12:32:48Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>assets in the above three categories and may squeeze out bank credit.</p></div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>assets in the above three categories and may squeeze out bank credit.</p></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div><p>In the wake of the global financial crisis, the SLR was reduced from 25  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div><p>In the wake of the global financial crisis, the SLR was reduced from 25  </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>percent to 24 percent in November, 2008. As of <del class="diffchange diffchange-inline">August, 2011 </del>the SLR stands at <del class="diffchange diffchange-inline">24 </del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>percent to 24 percent in November, 2008. As of <ins class="diffchange diffchange-inline">April 2016 </ins>the SLR stands at <ins class="diffchange diffchange-inline">21.25 </ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>percent. The SLR status of securities issued by the Government of India and the  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>percent. The SLR status of securities issued by the Government of India and the  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>State Governments is indicated by the RBI in its press releases at the time of  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>State Governments is indicated by the RBI in its press releases at the time of  </div></td></tr>
</table>Rosemary.ahttp://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&diff=905&oldid=prevArthapedia at 12:23, 3 October 20112011-10-03T12:23:42Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*Email- [mailto:rangeetg.ies@gmail.com rangeetg.ies@gmail.com]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*Email- [mailto:rangeetg.ies@gmail.com rangeetg.ies@gmail.com]</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>[[Category:concepts|<del class="diffchange diffchange-inline">S</del>]]</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>[[Category:concepts|<ins class="diffchange diffchange-inline">StatutoryLiquidityRatio</ins>]]</div></td></tr>
</table>Arthapediahttp://arthapedia.in/index.php?title=Statutory_Liquidity_Ratio&diff=333&oldid=prevRangeetghosh1980: Created page with "<p>The Statutory Liquidity Ratio (SLR) is a prudential measure under which (as per the Banking Regulations Act 1949) all Scheduled Commercial Banks in India must maintain an am..."2011-08-23T03:47:34Z<p>Created page with "<p>The Statutory Liquidity Ratio (SLR) is a prudential measure under which (as per the Banking Regulations Act 1949) all Scheduled Commercial Banks in India must maintain an am..."</p>
<p><b>New concept</b></p><div><p>The Statutory Liquidity Ratio (SLR) is a prudential measure under which (as <br />
per the Banking Regulations Act 1949) all Scheduled Commercial Banks in India <br />
must maintain an amount in one of the following forms as a percentage of their <br />
total DTL/NDTL;</p><br />
<p>[i] Cash.<br><br />
[ii] Gold; or<br><br />
[iii] Investments in <i>un-encumbered </i>Instruments that include;</p><br />
<p>(a) Treasury-Bills of the Government of India.<br><br />
(b) Dated securities including those issued by the Government of India from time <br />
to time under the market borrowings programme and the Market Stabilization <br />
Scheme (MSS).<br><br />
(c) State Development Loans (SDLs) issued by State Governments under their <br />
market borrowings programme.<br><br />
(d) Other instruments as notified by the RBI.</p><br />
<p>Traditionally the amount to be held thus was stipulated to be no lower than <br />
25 percent and not exceeding 40 percent of the bank’s total DTL. However, <br />
effective from January, 2007 the floor of 25 percent on the SLR was removed <br />
following an amendment of the Banking Regulation Act, 1949.</p><br />
<p>In contrast to the CRR, under which banks have to maintain cash with the RBI, <br />
the SLR requires holding of assets in <i>one</i> of the above three categories <br />
<i>by the <br />
bank itself</i>. For this purpose, while gold held as a part of the SLR requirement <br />
is valued at a rate not exceeding the current market rate, valuation of <br />
securities under category [iii] above is specified by the RBI from time to time. <br />
Specification of cash and gold as permissible forms are primarily on the basis <br />
of these being safe and liquid.</p><br />
<p>The SLR requirement facilitates a captive market for government securities <br />
which in turn implies negligible refinancing risks in the case of a debt crisis. <br />
If a bank fails to meet its SLR obligation, a <i>penalty</i> in the form of a penal <br />
interest payable is imposed.</p><br />
<p>SLR is also a tool for controlling liquidity in the domestic market via <br />
manipulating bank credit. A rise in SLR locks up increasing portion of a bank’s <br />
assets in the above three categories and may squeeze out bank credit.</p><br />
<p>In the wake of the global financial crisis, the SLR was reduced from 25 <br />
percent to 24 percent in November, 2008. As of August, 2011 the SLR stands at 24 <br />
percent. The SLR status of securities issued by the Government of India and the <br />
State Governments is indicated by the RBI in its press releases at the time of <br />
issuance while updated list of SLR securities are available in the ‘Database on <br />
Indian Economy’ hosted in the website of the bank www.rbi.org.in.</p><br />
<br />
<br />
==Contributed by==<br />
*[http://www.ies.gov.in/myaccount-profile-view.php?memid=359 Rangeet Ghosh, IES(2008)]<br />
*Email- [mailto:rangeetg.ies@gmail.com rangeetg.ies@gmail.com]<br />
<br />
[[Category:concepts|S]]</div>Rangeetghosh1980