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What is the full form of SLR in the context of economics?
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In the context of economics and banking, SLR stands for Statutory Liquidity Ratio. It refers to the proportion of a bank’s net demand and time liabilities (NDTL) that it is required to maintain in the form of liquid cash reserves, gold, or other securities mandated by the central bank (such as the Reserve Bank of India in India). This ratio is set by the central bank to ensure the solvency and liquidity of commercial banks.