Maintenance of Statutory Liquidity Ratio (SLR)
RBI has decided to reduce the Statutory Liquidity Ratio (SLR) of Scheduled Commercial Banks and Local Area Banks from 23.0 per cent of the Net Demand and Time Liabilities (NDTL) to 22.5 per cent with effect from the fortnight beginning June 14, 2014.
This is likely to expand banks' resource base by about Rs. 40,000 crores. This amount, now invested in government securities, could get released for lending purposes and corporates can expect more bank loans.