What is the full form of SLR in the context of economics?

Correct option is B

The correct answer is (B) Statutory Liquidity Ratio

Explanation:
SLR stands for Statutory Liquidity Ratio, which is the minimum percentage of a bank's net demand and time liabilities (NDTL) that it must keep in liquid assets like cash, gold, or government-approved securities.

Information Booster:

• Purpose: Ensures banks have liquidity for short-term obligations and controls excessive lending.
• Governing Authority: Set by the Reserve Bank of India (RBI).
• Current SLR: As of 2025, 18% of NDTL for Indian banks.
• Impact: A higher SLR reduces lending capacity, while a lower SLR boosts liquidity for lending.