<P> Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers . Statutory Liquidity Ratio is determined by Reserve Bank of India maintained by banks in order to control the expansion of bank credit . </P> <P> The SLR is determined by a percentage of total demand and time liabilities . Time Liabilities refer to the liabilities which the commercial banks are liable to pay to the customers after a certain period mutually agreed upon, and demand liabilities are such deposits of the customers which are payable on demand . An example of time liability is a six month fixed deposit which is not payable on demand but only after six months . An example of demand liability is a deposit maintained in saving account or current account that is payable on demand through a withdrawal form such as a cheque . </P> <P> The SLR is commonly used to control inflation and fuel growth, by increasing or decreasing it respectively . This counter acts by decreasing or increasing the money supply in the system respectively . Indian banks' holdings of government securities are now close to the statutory minimum that banks are required to hold to comply with existing regulation . When measured in rupees, such holdings decreased for the first time in a little less than 40 years (since the nationalisation of banks in 1969) in 2005--06. currently it is 20 percent . </P> <P> SLR is used by bankers and indicates the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities . Thus, we can say that it is ratio of cash and some other approved liability (deposits). It regulates the credit growth in India . </P>

What is the present statutory liquidity ratio in india