Are you looking for the full form of SLR and the meaning of SLR? So, in this post, we are going to learn about what is SLR, what SLR stands for, the abbreviation, and the acronym for SLR, So you should read this post till the end.
The Full Form of SLR: Statutory Liquidity Ratio
SLR stands for Statutory Liquidity Ratio. The SLR refers to the portion of deposits banks must keep on hand before issuing loans based on those deposits. It can be in any form of cash, gold reserves, government-approved securities, etc.
A bank can issue loans against its deposits only after it has secured this ratio. It is determined by the Reserve Bank what the Statutory Liquidity Ratio will be.
Banks are required to hold gold, cash, and other approved securities as a minimum percentage of their net demand and time liabilities. Its purpose of it is to regulate the growth of credit.
Also, the Reserve Bank offers interest on amounts held in SLR. This is not the case with CRR. SLR rate is calculated using the following formula:
SLR rate = (liquid assets / (demand + time liabilities) × 100%
Example of SLR in banking
There is a slight difference between Statutory Liquidity Ratio (SLR) and CRR, because in SLR notes must also be held in the fund to maintain liquidity, whereas in CRR bonds are purchased from the central government or state.
The bank also receives interest from them. The SLR at this time is 20%, so you would have to purchase bonds worth Rs 20 if you deposited Rs 100 in the bank. SLRs range from 0% to 40%.
What is liquidity
The term liquidity refers to the ability to buy money immediately, such as notes carrying the most liquidity, whereas bonds and securities have less liquidity because they are not immediately replaceable.
Differences between CRR and SLR
there are different types of points that prove, How the Cash Reserve Ratio is different from the Statutory Liquidity Ratio? let’s understand the Difference between CRR and SLR
|Statutory Liquidity Ratio (SLR)||Cash Reserve Ratio (CRR)|
|The RBI Monetary Policy Committee also decides on SLR as a monetary policy tool.||The Monetary Policy Committee of the RBI decides on the CRR as a monetary policy tool.|
|SLR is a reserve that banks have to keep with them.||CRR is a reserve that banks have to keep with RBI.|
|Gold, cash, or other approved securities are used to maintain SLR.||There needs to be a cash reserve for CRR.|
|SLR helps the banks to face sudden huge withdrawals by the depositors.||CRR gives control over inflation and the money supply in the economy.|
|SLR helps in regulating the credit facility.||CRR also helps in regulating the liquidity in the economy.|
|In the case of SLR reserve, banks can earn interest on the reserve amount.||In the case of CRR reserve, banks do not earn any interest on the reserve amount.|
|The SLR rate is decided by the Monetary Policy Committee of RBI.||The CRR rate is decided by the RBI Monetary Policy Committee.|
Now you might have got some ideas about the abbreviation, acronym, full form, and meaning of SLR. But, some of the most commonly used acronyms, abbreviations, full-forms, and the SLR meaning are listed in different categories below the table.
SLR meaning and FAQs
We have discussed what SLR stands for, as well as the full form, meaning, and definition of SLR. Now we are going to discuss some frequently asked questions on the internet. So, there are many FAQs on the meaning and the full form of SLR. Let’s explore SLR Meaning and FAQs.
What is the full form of SLR in Camera?
The Full Form of SLR is “Single Lens Reflex ” in the context of the camera. Single-lens reflex cameras (SLRs) use mirrors and prisms to allow the photographer to look through the lens and see what the camera is capturing. Rangefinder and twin-lens reflex cameras are capable of displaying images that differ significantly from the final image. In most SLR cameras, the mirror moves out of the way of light when the shutter button is pressed, allowing the light to pass through the light receptor and capture an image. the Definition of SLR and all possible meanings are given above, You might also like some similar terms related to SLR.
What is the meaning of SLR in photography?
The meaning of SLR is “Single Lens Reflex ” in the terms of photography. Check out all the meanings of SLR one by one, You might be searching for another term that is similar to SLR. since there may be more than one meaning of SLR.
What does SLR stand for?
SLR stands for “Single Lens Reflex “. SLR is also related to some other terms that you might like to know more about. so check out all meanings of SLR in the Above post section.
What does SLR mean in camera?
SLR means “Single Lens Reflex ” In the terms of camera. Earlier, we explained what SLR means. you can read Most used SLR Full Form and Meaning. check-out related information in the above section.
What is the acronym of SLR?
SLR is an acronym for “Single Lens Reflex “. The Definition & Meaning of SLR in Different Categories discussed above.
What is the full form of SLR?
The full name of SLR is “Statutory Liquidity Ratio” in banking. Finally, we also discussed all the important things about, What is that SLR and also related to the full name of SLR.
what does the abbreviation SLR stand for
The abbreviation of SLR represents “Single Lens Reflex “. You can also know some Most Using Full-Form and The meaning of SLR in the above section
What is the SLR Meaning in Banking?
The SLR means “Statutory Liquidity Ratio”. It is the most commonly used acronym in Banking. It may be more than one meaning of SLR so check out one by one in the above section.
What is the SLR Full Form in Finance?
SLR is a Finance term that stands for “Statutory Liquidity Ratio”. It has many other Full Forms there are listed Above.
Now you might have got some ideas about the abbreviation, acronym, full form, and meaning of SLR. Also all popular full forms, acronyms, abbreviations, and SLR meanings and definitions.