scheduleLimited-time priceNISM Premium ₹199₹499· 60% offEnds 15 August, Independence DayClaim offerarrow_forward

translateGLOSSARY · BANKING

What is Statutory Liquidity Ratio (SLR)?

SLR is the minimum percentage of deposits a bank must maintain in liquid assets like cash, gold or approved government securities.

PrepClever Glossary · Banking

updateUpdated July 2026

Formula

SLR Requirement = SLR% × Net Demand & Time Liabilities (NDTL)

The Statutory Liquidity Ratio ensures banks stay solvent and liquid. Unlike CRR, SLR assets can be held in G-Secs and gold, so they can earn a return. Adjusting SLR influences how much banks can lend and their demand for government bonds.

lightbulb

Example

At an 18% SLR, a bank with ₹1,000 crore deposits must hold ₹180 crore in liquid assets like G-Secs.

info

Relevant NISM series

IBPS PORBI Grade BJAIIB

See Statutory Liquidity Ratio (SLR) in exam questions

1,200+ NISM practice questions. Free to start.

Start Practice Free

Related Terms

menu_book

Glossary

FAQs about Statutory Liquidity Ratio (SLR)

Can SLR securities earn interest?add

Yes — SLR can be held in government securities and gold, which earn returns, unlike the cash held for CRR.

Where to go from here

Statutory Liquidity Ratio (SLR) is one term in a much larger syllabus. These are the fastest routes into the rest of it.

quizPractice Questionsarrow_forward1,200+ SEBI-pattern MCQs, each with a worked solution rather than just the right option.timerFree Mock Quizarrow_forwardA timed quiz you can take right now in the browser — no sign-up, instant score.menu_bookStudy Notesarrow_forwardChapter-by-chapter explainers written to be read in five minutes, not five hours.routeLearning Pathwaysarrow_forwardGuided routes into real roles — Research Analyst, Mutual Fund Distributor and more.grid_viewAll 26 NISM Seriesarrow_forwardBrowse every certification, its syllabus and who each one is actually for.descriptionThe NISM Guidearrow_forwardRegistration, fees, pass marks and exam-day logistics, start to finish.

Master every term that matters

Practice NISM questions that test Statutory Liquidity Ratio (SLR) and 200+ other key concepts.

Start Free Trial

What is Statutory Liquidity Ratio (SLR)?

Related Terms

Cash Reserve Ratio (CRR)

Repo Rate

Priority Sector Lending (PSL)

FAQs about Statutory Liquidity Ratio (SLR)

Where to go from here

Master every term that matters

What is Statutory Liquidity Ratio (SLR)?

Related Terms

Cash Reserve Ratio (CRR)

Repo Rate

Priority Sector Lending (PSL)

FAQs about Statutory Liquidity Ratio (SLR)

Where to go from here

Master every term that matters