The basic difference between CRR and SLR is: while SLR requires banks to retain a specific percentage of their deposits in the form of liquid assets, such as cash, government securities, or gold, CRR requires banks to hold a specific percentage of their deposits as cash reserves with the Reserve Bank of India (RBI).
CRR Vs SLR
CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) are important monetary policy tools used by the Reserve Bank of India (RBI) to regulate liquidity, control inflation, and ensure financial stability in the banking system.
CRR (Cash Reserve Ratio) | SLR (Statutory Liquidity Ratio) |
CRR is maintained only in cash with the RBI | SLR can be in cash, gold, or approved securities held by the bank |
CRR primarily controls liquidity and inflation | SLR ensures bank solvency and funds for government borrowing |
CRR directly affects the bank’s lending power | SLR affects both liquidity and investment patterns |
This is the overall difference between CRR and SLR.
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What is the Difference Between CRR and SLR?
priya
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7 months
2025-05-21T12:38:28+00:00 2025-12-26T17:48:45+00:00Comment
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