Statutory Meaning & Definition
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.
Frequently Asked Questions (FAQs)
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.
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.
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.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to RBI:
RBI Domestic Money Transfer Directions 2026: Cash Pay-Out and Pay-In Limits Explained
Published: 11 November 2026
RBI CTS Cheque Book Change from 31 December 2026 Is Fake: No New Cheque Books from 1 January 2027
Published: 8 November 2026
RBI Priority Sector Lending Draft Directions 2026: Five RE-Wise Drafts, Comments Open Till 26 November
Published: 6 November 2026
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