Which of the following statements are correct in context of Statutory Liquidity Ratio (SLR)? 1. SLR consists of a certain percentage of liquid assets of NDTL. 2. Liquid assets for the purpose are those assets that one can easily convert into cash, gold, treasury bills, govt-approved securities, government bonds, and cash reserves. 3. SLR includes securities, eligible under Market Stabilization Schemes and those under the Market Borrowing Programmes. 4. The limit of SLR set is 0 to 40% of NDTL.

The correct answer is: C. 1, 2, 3 and 4 are correct

SLR stands for Statutory Liquidity Ratio. It is a reserve requirement imposed by the Reserve Bank of India (RBI) on commercial banks in India. It is the minimum amount of liquid assets that banks are required to hold as a percentage of their net demand and time liabilities (NDTL).

The purpose of SLR is to ensure that banks have enough liquidity to meet the demands of their customers. It also helps to control inflation by absorbing excess liquidity from the market.

The SLR is set by the RBI and is reviewed periodically. The current SLR is 18%.

Liquid

assets for the purpose of SLR are those assets that can be easily converted into cash. These include cash, gold, treasury bills, government bonds, and other approved securities.

Securities, eligible under Market Stabilization Schemes and those under the Market Borrowing Programmes are also included in SLR.

The limit of SLR is set by the RBI and is currently 18% of NDTL.

Therefore, all of the statements in the question are correct.