RBI says that it will reduce the statutory liquidity ratio by 0.25 percent every quarter beginning January next year

A- A A+

Last Updated : Feb 21 2019 9:49PM Screen Reader Access

News Highlights

India decides to stop its share of river waters which flow into Pakistan PM Modi says terrorism, climate change two biggest threats to mankind Govt approves air travel entitlement to CAPF personnel on Delhi-Srinagar-Delhi, Jammu-Srinagar-Jammu sectors President promulgates 4 Ordinances including Muslim Women (Protection of Rights on Marriage) Second Ordinance Russia warns US against deploying new missiles in Europe

Business News

Dec 05, 2018

9:14PM

RBI says that it will reduce the statutory liquidity ratio by 0.25 percent every quarter beginning January next year

File Pic

The Reserve Bank today said that it will reduce the statutory liquidity ratio by 0.25 percent every quarter beginning January next year.

Statutory Liquidity Ratio - SLR - is the portion of funds which banks are required to maintain in the form of cash, gold reserves, the government approved securities before providing credit to the customers.

In a statement, RBI said the reduction will continue until it reaches 18 per cent from the current 19.5 percent. The move is likely to release funds locked in government securities and add to lendable liquidity.

In order to improve liquidity management by banks, RBI has said that it will release the CRR figure of banks to market participants on the very next day.

Currently, the cash reserve ratio balance of banks is disclosed with a lag of 2-3 days, while the details of the currency in circulation are being released with a lag of one