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BANKING AND MONETARY POLICY — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY2 Marks
Question
Define statutory liquidity ratio.
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Answer

Statutory liquidity ratio is the percentage of total deposits $(25\%$ or more$)$ that the commercial banks have to maintain with $RBI$ inform of cash, gold, government approved securities.

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