<Dt> Statutory Liquidity Ratio </Dt> <Dd> Every financial institution has to maintain a certain quantity of liquid assets with themselves at any point of time of their total time and demand liabilities . These assets have to be kept in non cash form such as G - secs precious metals, approved securities like bonds etc . The ratio of the liquid assets to time and demand assets is termed as the Statutory liquidity ratio. There was a reduction of SLR from 38.5% to 25% because of the suggestion by Narsimham Committee . The current SLR is 20.50% . This will be reduced to 20% with effect from 24th June 2017 in line with the changes in RBI Credit Policy . </Dd> <Dl> <Dt> Bank Rate Policy </Dt> <Dd> The bank rate, also known as the discount rate, is the rate of interest charged by the RBI for providing funds or loans to the banking system . This banking system involves commercial and co-operative banks, Industrial Development Bank of India, IFC, EXIM Bank, and other approved financial institutes . Funds are provided either through lending directly or discounting or buying money market instruments like commercial bills and treasury bills . Increase in Bank Rate increases the cost of borrowing by commercial banks which results in the reduction in credit volume to the banks and hence declines the supply of money . Increase in the bank rate is the symbol of tightening of RBI monetary policy . As on 9th Aug 2017 bank rate is 6.00 percent . </Dd> </Dl> <Dt> Bank Rate Policy </Dt>

What is crr slr repo rate and reverse repo rate