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Statutory Liquidity Ratio or SLR is the proportion of deposits that banks have to maintain in the form of investments in cash, gold or government paper. In due course of time, the SLR cut is likely to ease pressure on the banks and allow for more room for private lending.
Although there is no immediate need for liquidity infusion, there is a subtle liquidity pressure because of the gap between credit growth rate and deposit growth rate. Over the next few months, that pressure might re-emerge as deposit growth might be slower than credit growth. So, by reducing SLR now, banks can plan ahead as opposed waiting for a policy action when the pressure becomes visible. The SLR cut has created capacity, although there is no immediate liquidity infusion.
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What is the current CRR and SLR rate for 2011?
The present rate of CRR is 6% and SLR is 24%.Thank you.
Monetary policy of India?
means latest crr, repo rate,revers repo rate, bank rate ,slr
What do you mean by SLR rate in bank and what is it rate percentage?
Statutory Liquidity Ratio or SLR as it is more commonly called is the amount of liquid cash every bank has to maintain in order to meet the daily customer withdrawal demands. Whatever money we deposit with banks, they lend it out to other customers to make a profit out of it. Imagine you depositing a few lakh rupees out of your retirement corpus with a bank and visiting the bank to withdraw some money to get a gift for your grandson and the bank telling you that since the loan re-payments were not received on time, you can't take money out of your account right now? That would be bad wouldn't it? This is exactly why banks have to maintain a SLR so that they don't have to refuse withdrawal transactions from deposit customers. It's your money and you should be able to withdraw it anytime you want.
What are the three main instruments used in monetary operations?
NOTE- Although answer of the asked question starts for the number 2 Monetary Policy, i am giving a little bit more in-detail information with an intension to give a broader persepetive to the asked question...Governments of any countries use the 2 broad polices- below mentioned- as a control measure of the economy :1. Through Fiscal policy(Regualte by the government of the country) - Set of programs run by a government in the welfare of the people of the country. Under monetary policy a govnt decides on how much is to be spent on the development activities of the country, decision on different types of tax rates etc. By increasing or decreasing the tax rates, the government controls the level of expenditures of the people.2. Monetary Policy (Regulated by the central bank of the country ) - Its the control over money supply in the economy. This help to control inflation in a country. 3 broad instruments are :A) Opent Market Oportunity - Purchase or sale of governemt bonds by the central bank.B) Reserve Requirement - Using this istrument a governt controls money supply into the economy and hence indirectly controlling the inflation. Under reserve requirements (like, Cash reserve ratio, SLR, C/D etc.) banks of a country are required to keep either the percentage of their deposits as a reserve either with the central bank of the country (RBI in case of India) or invest a definite percentage of their total working capital (like cash) in the government bonds. As a result of these, banks are left with less money available with them to lend. When reserve rates are inceased, the money availble in the economy is less and hence demand decrease.C) Repo and reverse repo rate - Repo rate is the rate at which government lends money to the commercial banks. Repo rate is simillar to bank rate. The only difference is that repo rate is the rate in imergecy money demand by the banks where as bank rate is the rate implied at normal situations.Reverse repo rate is the reverse of the repo rate. The intension of this two rates are to restrict the banks from amount of money they inturn can lend to the consumers.
Explain Credit control by RBI on commercial bank?
Credit Control of RBI(briefly) Need: 1.To encourage the priority sectors for overall growth 2.Fecilitate the flow of adequate volume of bank credit to its industry, Agriculture and trade 3.To keep Inflation pressure under check 4.To ensure that Credit is not diverted to undesirable purposes 5.To fecilitate the Development of Indian economic growth Types of credit control : 1)Quantitative Method 1.Bank rate policy: by controlling the ways and means advances to the govt. 2.Open Market operation: by controling Short term liquidity in the market. 3.variation of cash reserve ratio: by increasing or reducing CRR or SLR. 4.fixation of lending rate: control by Increasing or reducing the rate of primary or secondary lending rates 5.Credit sequeenze: by controlling the amount of bank credit at a certain limit and fixing maximum limit for commercial borrowings. 2)Qualitative Method 1.Fixation of Margin Requirement 2.Regulation of consumer credit 3.Rationing of credit 4.Prior authorisation of schemes 5.Moral sausion 6.Direct Action
Does an aperture ring affect the use of a digital SLR and if so how?
An aperture ring affects the SLR camera because you turn it to adjust light and focus.
What is the full form of slr coach in railway?
SLR stands for Gurad or Brake van in Indian railway. To get more List of abbreviations related to Indian railway, please check Indian railway officials - http://www.indianrailways.gov.in/railwayboard/view_section.jsp?id=0,1,304,366,389,402,435,495 TravelKhana.com
Is an slr faster than a zonda?
The SLR is a fast car and so is the Zonda. It is proven that the SLR is faster
What do you mean by SLR in Indian banking sector?
SLR is an acronym for Statutory liquidty Ratio stipulated for all banks operating in India. Presently it is 25% of the total demand and term liabilities of the bank which are to be maintained in the form unencumbered investments in specified securities approved by RBI.
What does SLR stand for in Digital SLR?
Single Lens Reflex
What does SLR stand for in 'digital SLR'?
Single Lens Reflex.
What does SLR stand for and waht does it do?
SLR is Single lens Reflux.
What does slr stand for in a canon camera?
what does SLR stand for on camers
How many cylinders are in a slr mclaren?
8 cylinders. The SLR haves a V8
Can you change the Nikon n6006 from a film SLR camera to a digital a SLR camera?
No
How many Mercedes mclaren slr were made?
how many slr mclearn were made
What is the current CRR and SLR rate of Bangladesh for 2012?
crr=6% slr=19%
