Experts can you tell me the answer of this question
In the present COVID-19 times, many economists have raised their concerns that
Indian economy may have to face a deflationary situation, due to reduced
economic activities in the country. So the Reserve Bank of India (RBI), cut Repo
Rate to the lowest in two decades. Also, it reduced the Cash Reserve Ratio (CRR)
maintained by the banks for the first time in over seven years. CRR for all banks
was cut by 100 basis points to release ₹ 1.37 lakh crores across the banking system.
RBI governor Dr. Shaktikanta Das predicted a big global recession and said India
will not be immune. It all depends how India responds to the situation. Aggregate
demand may weaken and ease core inflation.
QUESTION
Statutory liquidity ratio is the minimum percentage of deposits that a bank
has to maintain in form of cash or other approved securities. To overcome
this present situation whether RBI increased or decreased the SLR.
Dear Student, Statutory liquidity ratio is the minimum percentage of deposits that a bank has to maintain in form of cash or other approved securities. To overcome in this present pandemic situation RBI will decreased the SLR. This will help the banks to give more loans to the country people at the low rate of interest. People will borrow more loans and invest their money in the country which will enhance more employment and demand in the country. Regards!