When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points which of the following is likely to happen?

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points which of the following is likely to happen?

[UPSC Civil Services Exam – 2015 Prelims]

(a) India’s GDP growth rate increases drastically

(b) Foreign Institutional Investors may bring more capital into our country

(c) Scheduled Commercial Banks may cut their lending rates

(d) It may drastically reduce the liquidity to the banking system

Answer: (c)

Explanation:

SLR is a mechanism used by RBI to regulate the liquidity of assets and requires the banks to invest a certain portion of their deposits in RBI-approved securities or gold.
When SLR is reduced, banks have more money to lend which may lead to a decrease in lending rates.
By changing the level of SLR, the Reserve Bank of India can increase or decrease bank credit expansion.
- Ensuring the solvency of commercial banks.
By reducing the level of SLR, the RBI can increase liquidity with the commercial banks, resulting in increased investment.
This is done to fuel growth and demand.
Hence, option 3 is correct.

Which one of the following Schedules of the Constitution of India contains provisions regarding anti-defection?

The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to

The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to [UPSC Civil Services Exam – 2015 Prelims]

Consider the following statements: The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:

Consider the following statements: The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:

Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void?

Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void? [UPSC

The Ninth Schedule was introduced in the Constitution of India during the prime ministership of

The Ninth Schedule was introduced in the Constitution of India during the prime ministership of [UPSC Civil Services Exam – 2019 Prelims] (a) Jawaharlal Nehru

Categories

Which one of the following Schedules of the Constitution of India contains provisions regarding anti-defection?

The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to

Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void?

The Ninth Schedule was introduced in the Constitution of India during the prime ministership of

Useful Links

Download
Neyyar App

Categories

Which one of the following Schedules of the Constitution of India contains provisions regarding anti-defection?

The provisions in Fifth Schedule and Sixth Schedule in the Constitution of India are made in order to

Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void?

The Ninth Schedule was introduced in the Constitution of India during the prime ministership of

Useful Links

Download Neyyar App

Download
Neyyar App