What is SLR Rate?

• SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to
  maintain in the form of cash, or gold or govt. approved securities (Bonds) before
  providing credit to its customers. 
• SLR rate is determined and maintained by the Central bank (Reserve Bank of India) in order to control the expansion of bank credit. 
• SLR is determined as the percentage of total demand and percentage of time liabilities.
• Time Liabilities are the liabilities a commercial bank liable to pay to the customers
  on their anytime demand. 
• SLR is used to control inflation and propel growth.
• Through SLR rate tuning the money supply in the system can be controlled
  efficiently.