{"id":33031,"date":"2024-04-15T09:10:31","date_gmt":"2024-04-15T09:10:31","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33031"},"modified":"2024-04-15T09:10:31","modified_gmt":"2024-04-15T09:10:31","slug":"banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/","title":{"rendered":"Banks in India are required to maintain a portion of their demand and time liabilities with the RBI but no interest is paid on that amount. This portion is called:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;statutory liquidity ratio&#8221; option2=&#8221;cash reserve ratio&#8221; option3=&#8221;reserve repo&#8221; option4=&#8221;government securities&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. statutory liquidity ratio<\/strong><\/p>\n<p>The statutory liquidity ratio (SLR) 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 in the form of cash, gold, or government securities. The SLR is currently set at 18% of a bank&#8217;s net demand and time liabilities (NDTL).<\/p>\n<p>The SLR is designed to ensure that banks have enough liquidity to meet the demands of their customers and to prevent a run on the banks. It also helps to control the money supply in the economy.<\/p>\n<p>The SLR is a controversial measure. Some economists argue that it is an unnecessary and outdated measure that stifles lending and economic growth. Others argue that it is an important tool for monetary policy and that it helps to keep the financial system stable.<\/p>\n<p>The RBI has been gradually reducing the SLR in recent years in order to encourage lending and economic growth. The SLR was reduced from 20% to 18% in April 2017.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li><strong>B. cash reserve ratio<\/strong> is the minimum amount of cash that banks are required to hold in their vaults.<\/li>\n<li><strong>C. reserve repo<\/strong> is a type of repurchase agreement (repo) in which the RBI lends money to banks against the security of government securities.<\/li>\n<li><strong>D. government securities<\/strong> are bonds issued by the government of India.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;statutory liquidity ratio&#8221; option2=&#8221;cash reserve ratio&#8221; option3=&#8221;reserve repo&#8221; option4=&#8221;government securities&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699],"tags":[],"class_list":["post-33031","post","type-post","status-publish","format-standard","hentry","category-banking-and-financial-institutions","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Banks in India are required to maintain a portion of their demand and time liabilities with the RBI but no interest is paid on that amount. This portion is called:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks in India are required to maintain a portion of their demand and time liabilities with the RBI but no interest is paid on that amount. This portion is called:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;statutory liquidity ratio&#8221; option2=&#8221;cash reserve ratio&#8221; option3=&#8221;reserve repo&#8221; option4=&#8221;government securities&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T09:10:31+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Banks in India are required to maintain a portion of their demand and time liabilities with the RBI but no interest is paid on that amount. This portion is called:","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/","og_locale":"en_US","og_type":"article","og_title":"Banks in India are required to maintain a portion of their demand and time liabilities with the RBI but no interest is paid on that amount. This portion is called:","og_description":"[amp_mcq option1=&#8221;statutory liquidity ratio&#8221; option2=&#8221;cash reserve ratio&#8221; option3=&#8221;reserve repo&#8221; option4=&#8221;government securities&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T09:10:31+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/","url":"https:\/\/exam.pscnotes.com\/mcq\/banks-in-india-are-required-to-maintain-a-portion-of-their-demand-and-time-liabilities-with-the-rbi-but-no-interest-is-paid-on-that-amount-this-portion-is-called\/","name":"Banks in India are required to maintain a portion of their demand and time liabilities with the RBI but no interest is paid on that amount. 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