# Banking Terminologies for Bank PO Exams #
#SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers.
#SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit.
#SLR is determined as the percentage of total demand and percentage of time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime demand.
#With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a commercial bank.
#It is also helpful to control the expansion of Bank Credits.
#By changing the SLR rates, RBI can increase or decrease bank credit expansion.
#Through SLR, RBI compels the commercial banks to invest in government securities like government bonds.
#SLR is used to control inflation n growth.
## CURRENT SLR RATE IN INDIA IS 25% ##
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