Q. The statutory liquidity ratio (SLR) is/are maintained under which of the following form/s?
3.Unencumbered approved securities valued at a price as specified by the RBI from time to time.
Choose the correct answer from below given codes:
Explanation: In terms of Section 24 (2-A) of the B.R. Act, 1949 all Scheduled Commercial Banks, in addition to the average daily balance which they are required to maintain under Section 42 of the RBI, Act, 1934, are required to maintain in India,
- in cash, or
- in gold valued at a price not exceeding the current market price,
- in unencumbered approved securities valued at a price as specified by the RBI from time to time.
an amount which shall not, at the close of the business on any day, be less than 25 per cent or such other percentage not exceeding 40 per cent as the RBI may from time to time, by notification in gazette of India, specify, of the total of its demand and time liabilities in India as on the last Friday of the second preceding fortnight,
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.
Source: Ramesh Singh