Question

State one difference between Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

Answer 1

• Cash Reserve Ratio (CRR): Banks are required to keep a certain percentage of their deposits as cash with the Reserve Bank of India (RBI).
• Statutory Liquidity Ratio (SLR): Banks must maintain a specified percentage of their deposits in the form of liquid assets such as cash, gold, or approved government securities with themselves.