(SLR) Statutory Liquidity Ratio is a requirement under the Banking Regulation Act of 1949. It mandates commercial banks in India to keep a minimum percentage of their (NDTL) Net Demand and Time Liabilities in liquid assets, such as cash and gold. NTDL are the total deposits a bank has from the public, minus deposits it holds with other banks. The SLR can be calculated below using the formula SLR= (Liquid assets/NDTL) x 100 A higher SLR limits bank lending and controls inflation, while a lower SLR boosts liquidity and encourages lending. It is a key tool for the RBI to maintain financial stability and manage liquidity in the economy.