{"id":90870,"date":"2025-06-01T10:39:18","date_gmt":"2025-06-01T10:39:18","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90870"},"modified":"2025-06-01T10:39:18","modified_gmt":"2025-06-01T10:39:18","slug":"the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/","title":{"rendered":"The banks are required to maintain a certain ratio between their cash"},"content":{"rendered":"

The banks are required to maintain a certain ratio between their cash in hand and total assets. This ratio is known as :<\/p>\n

[amp_mcq option1=”Cash Reserve Ratio (CRR)” option2=”Statutory Liquidity Ratio (SLR)” option3=”Central Bank Reserve (CBR)” option4=”Statutory Bank Ratio (SBR)” correct=”option2″]<\/p>\n

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This question was previously asked in<\/div>\n
UPSC CAPF – 2023<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
Banks in India are required to maintain certain ratios as per regulations by the Reserve Bank of India (RBI). The Statutory Liquidity Ratio (SLR) is the ratio of a bank’s liquid assets (including cash in hand\/vault cash, gold, and unencumbered approved government securities) to its Net Demand and Time Liabilities (NDTL). While the question asks for a ratio between cash in hand and total assets, which is not a directly mandated standalone ratio by name, SLR is the key regulatory ratio that requires banks to hold liquid assets, *including cash in hand*, relative to their liabilities. Vault cash held by banks contributes to meeting the SLR requirement. Therefore, among the given options, SLR is the ratio most directly related to the requirement for banks to hold liquid assets, including cash in hand, even if the denominator mentioned in the question (“total assets”) is not precisely NDTL.<\/section>\n
SLR is a required ratio that mandates banks to hold a certain percentage of their NDTL in liquid assets, including cash in hand (vault cash), gold, and approved securities.<\/section>\n
Cash Reserve Ratio (CRR) requires banks to hold a certain percentage of their NDTL as cash balances with the RBI, not cash in hand or against total assets. Central Bank Reserve (CBR) and Statutory Bank Ratio (SBR) are not standard regulatory terms in this context.<\/section>\n","protected":false},"excerpt":{"rendered":"

The banks are required to maintain a certain ratio between their cash in hand and total assets. This ratio is known as : [amp_mcq option1=”Cash Reserve Ratio (CRR)” option2=”Statutory Liquidity Ratio (SLR)” option3=”Central Bank Reserve (CBR)” option4=”Statutory Bank Ratio (SBR)” correct=”option2″] This question was previously asked in UPSC CAPF – 2023 Download PDFAttempt Online Banks … <\/p>\n

Detailed SolutionThe banks are required to maintain a certain ratio between their cash<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1105,1120,1190],"class_list":["post-90870","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1105","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nThe banks are required to maintain a certain ratio between their cash<\/title>\n<meta name=\"description\" content=\"Banks in India are required to maintain certain ratios as per regulations by the Reserve Bank of India (RBI). The Statutory Liquidity Ratio (SLR) is the ratio of a bank's liquid assets (including cash in hand\/vault cash, gold, and unencumbered approved government securities) to its Net Demand and Time Liabilities (NDTL). While the question asks for a ratio between cash in hand and total assets, which is not a directly mandated standalone ratio by name, SLR is the key regulatory ratio that requires banks to hold liquid assets, *including cash in hand*, relative to their liabilities. Vault cash held by banks contributes to meeting the SLR requirement. Therefore, among the given options, SLR is the ratio most directly related to the requirement for banks to hold liquid assets, including cash in hand, even if the denominator mentioned in the question ("total assets") is not precisely NDTL. SLR is a required ratio that mandates banks to hold a certain percentage of their NDTL in liquid assets, including cash in hand (vault cash), gold, and approved securities.\" \/>\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\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The banks are required to maintain a certain ratio between their cash\" \/>\n<meta property=\"og:description\" content=\"Banks in India are required to maintain certain ratios as per regulations by the Reserve Bank of India (RBI). The Statutory Liquidity Ratio (SLR) is the ratio of a bank's liquid assets (including cash in hand\/vault cash, gold, and unencumbered approved government securities) to its Net Demand and Time Liabilities (NDTL). While the question asks for a ratio between cash in hand and total assets, which is not a directly mandated standalone ratio by name, SLR is the key regulatory ratio that requires banks to hold liquid assets, *including cash in hand*, relative to their liabilities. Vault cash held by banks contributes to meeting the SLR requirement. Therefore, among the given options, SLR is the ratio most directly related to the requirement for banks to hold liquid assets, including cash in hand, even if the denominator mentioned in the question ("total assets") is not precisely NDTL. SLR is a required ratio that mandates banks to hold a certain percentage of their NDTL in liquid assets, including cash in hand (vault cash), gold, and approved securities.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:39:18+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":"The banks are required to maintain a certain ratio between their cash","description":"Banks in India are required to maintain certain ratios as per regulations by the Reserve Bank of India (RBI). The Statutory Liquidity Ratio (SLR) is the ratio of a bank's liquid assets (including cash in hand\/vault cash, gold, and unencumbered approved government securities) to its Net Demand and Time Liabilities (NDTL). While the question asks for a ratio between cash in hand and total assets, which is not a directly mandated standalone ratio by name, SLR is the key regulatory ratio that requires banks to hold liquid assets, *including cash in hand*, relative to their liabilities. Vault cash held by banks contributes to meeting the SLR requirement. Therefore, among the given options, SLR is the ratio most directly related to the requirement for banks to hold liquid assets, including cash in hand, even if the denominator mentioned in the question (\"total assets\") is not precisely NDTL. SLR is a required ratio that mandates banks to hold a certain percentage of their NDTL in liquid assets, including cash in hand (vault cash), gold, and approved securities.","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\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/","og_locale":"en_US","og_type":"article","og_title":"The banks are required to maintain a certain ratio between their cash","og_description":"Banks in India are required to maintain certain ratios as per regulations by the Reserve Bank of India (RBI). The Statutory Liquidity Ratio (SLR) is the ratio of a bank's liquid assets (including cash in hand\/vault cash, gold, and unencumbered approved government securities) to its Net Demand and Time Liabilities (NDTL). While the question asks for a ratio between cash in hand and total assets, which is not a directly mandated standalone ratio by name, SLR is the key regulatory ratio that requires banks to hold liquid assets, *including cash in hand*, relative to their liabilities. Vault cash held by banks contributes to meeting the SLR requirement. Therefore, among the given options, SLR is the ratio most directly related to the requirement for banks to hold liquid assets, including cash in hand, even if the denominator mentioned in the question (\"total assets\") is not precisely NDTL. SLR is a required ratio that mandates banks to hold a certain percentage of their NDTL in liquid assets, including cash in hand (vault cash), gold, and approved securities.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:39:18+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\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-banks-are-required-to-maintain-a-certain-ratio-between-their-cash\/","name":"The banks are required to maintain a certain ratio between their cash","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:39:18+00:00","dateModified":"2025-06-01T10:39:18+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Banks in India are required to maintain certain ratios as per regulations by the Reserve Bank of India (RBI). The Statutory Liquidity Ratio (SLR) is the ratio of a bank's liquid assets (including cash in hand\/vault cash, gold, and unencumbered approved government securities) to its Net Demand and Time Liabilities (NDTL). While the question asks for a ratio between cash in hand and total assets, which is not a directly mandated standalone ratio by name, SLR is the key regulatory ratio that requires banks to hold liquid assets, *including cash in hand*, relative to their liabilities. Vault cash held by banks contributes to meeting the SLR requirement. Therefore, among the given options, SLR is the ratio most directly related to the requirement for banks to hold liquid assets, including cash in hand, even if the denominator mentioned in the question (\"total assets\") is not precisely NDTL. 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