Which of the following is / are included under Statutory Pre-emptions?
Which of the following is / are included under Statutory Pre-emptions?
1. SLR
2. CRR
3. Bank Rate
4. Repo Rate
Select the correct option from the codes given below:
[A]Only 1 & 2
[B]Only 1, 2 & 3
[C]Only 2, 3 & 4
[D]Only 1, 2 & 4
Only 1 & 2
Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are called Statutory Pre-emptions. The RBI has been empowered by Banking Regulation Act and RBI act to mandate commercial banks to maintain a certain portion of their Net Demand and Time Liabilities (NDTL) in the form of cash with the Reserve Bank [this is called Cash Reserve Ratio (CRR)] and in the form of investment in unencumbered approved securities [this is called Statutory Liquidity Ratio (SLR)]. They are statutory because they get their legality from Banking Regulation Act 1949.