RBI to cut SLR gradually to 18%; cut of 0.25% per quarter

  • The RBI has decided to reduce statutory liquidity ratio (SLR) by 0.25 per cent (25 bps) every quarter beginning January 2019. 
  • The calibrated reduction in statutory liquidity ratio (SLR) will continue till it reaches 18 per cent. The current SLR is 19.5 per cent.
  • SLR is the portion of funds which banks are required to park in treasury bills and other instruments