Economy, asked by brittanyspears7364, 9 months ago

What is the effect of increase in statutory liquidity ratio ?

Answers

Answered by debajyotysen
2

Answer:

If the SLR increases, it restricts the bank's lending capacity and helps in controlling the inflation by soaking the liquidity from the market. Consequently, banks will have less money available to lend, and they will charge higher interest rates on loans to keep up with their profit margin.

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