Q. Consider the following statements regarding Statutory Liquidity Ratio (SLR):
1.It is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.
2.The ratio is fixed by Reserve Bank of India.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: The statutory liquidity ratio (SLR) is the ratio (fixed by the RBI) of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form prescribed by the government to be in the range of 25 to 40 per cent.

Source: TMH Ramesh Singh and RBI website