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  2. The difference between SLR and CRR is123:
    • CRR is the percentage of money, which a bank has to keep with RBI in the form of cash.
    • SLR is the proportion of liquid assets to time and demand liabilities.
    • CRR helps RBI to control the flow of money in the market.
    • SLR helps the bank to handle a sudden increase in demand of depositors.
    • Maintenance of deposit is done by RBI in Cash Reserve ratio whereas in Statutory Liquidity Ratio maintenance is done by the bank itself.
    Learn more:
    What is the difference between SLR and CRR? Ans. Cash Reserve Ratio (CRR) is the percentage of money, which a bank has to keep with RBI in the form of cash. Whereas, Statutory Liquidity Ratio (SLR) is the proportion of liquid assets to time and demand liabilities.

    CRR is an abbreviation for Cash Reserve Ratio which is the percentage of Net Demand and Time Liabilities which the commercial banks need to park with the Central Bank. On the contrary, SLR or Statutory Liquidity Ratio is the percentage of money which the banks need to maintain with themselves in the form of liquid assets, at any point in time.

    keydifferences.com/difference-between-crr-and-slr.…

    CRR helps RBI to control the flow of money in the market whereas Statutory Liquidity Ratio helps the bank to handle a sudden increase in demand of depositors. Maintenance of deposit is done by RBI in Cash Reserve ratio whereas in Statutory Liquidity Ratio maintenance is done by the bank itself.

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