Call to abolish statutory liquidity ratio for banks
pre-market1 source ↓written by the desknot a recommendation
- currently
- 18%
The Economic Times suggests that the statutory liquidity ratio (SLR), currently at 18%, should be abolished to modernize India's banking system. This move aims to reduce complacency among banks and align with global practices. A phased approach over five years is recommended to mitigate political backlash. Such changes could enhance liquidity and stimulate economic growth.
Not investment advice. For informational purposes only.