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| Definition | : | Statutory Liquidity Ratio |
| Category | : | Business » Banking |
| Country/ Region |
: | India
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| Popularity | : |
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| Type | : |
Initialism
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Statutory Liquidity Ratio (SLR) is a regulatory requirement set by central banks, including the Reserve Bank of India (RBI), which mandates the proportion of certain types of assets that banks must maintain in the form of liquid assets. These liquid assets can include cash, gold, or government-approved securities.
SLR is expressed as a percentage of a bank's total deposits and serves as a prudential measure to ensure the stability and liquidity of the banking system.
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The full form of SLR is Statutory Liquidity Ratio