RBI1 min read
Statutory Liquidity Ratio
The minimum percentage of net demand and time liabilities (NDTL) that banks must maintain in liquid assets (gold, government securities, and RBI-approved securities) under Section 24 of the Banking Regulation Act, 1949.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Statutory Liquidity Ratio in Indian corporate law?▼
The minimum percentage of net demand and time liabilities (NDTL) that banks must maintain in liquid assets (gold, government securities, and RBI-approved securities) under Section 24 of the Banking Regulation Act, 1949.
Q2. Why is Statutory Liquidity Ratio important for compliance?▼
Statutory Liquidity Ratio is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Statutory Liquidity Ratio?▼
Statutory Liquidity Ratio is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
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