What is SLR Rate ? RBI hiked SLR by 1%

by khalid on 27/10/2009 · 2 comments

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SLR is a ratio called Statutory Liquidity Ratio and RBI have control hand over it to protect the right of general public. RBI demands that there should be certain amount that Bank needs to keep in the form of cash or gold or govt. approved securities (Bonds) and the ramaining is only they have to give it to customers either as credit in any form , as loan or mortgage or something .

Now RBI has increased the rate by 1 percent , which means that the banks have to either invest in gold or government securities, this is something like repayment for the money that RBI let out to the banking system. This will really help RBI to control the expansion of Bank Credits. , This percentange comes to effect from from 7th November 2009.This means that the cash reserve in banks hand will go down by 1% or so.

Reserve Bank of India (RBI) which came out with quarterly monetary policy review today on october 27th 2009 , has decided to keep all the key rates like repo or reverse repo and the CRR steady and has hiked the statutory liquidity ratio (SLR) to 25% from 24%.

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R lakshminarayanan April 7, 2011

We are doing everything but we don’t know as a central bank in india how to control real inflation and to eradicate blackmoney and meagre tax filing by tax ervaders. Real estate will take RBI for raid when India will face its sub-prime however india has enormous funds to book bad debts. Real estate will screw india.

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