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Correct Answer: Option (D) — Statutory Liquidity Ratio
Concept & Option Breakdown
Standard Reference VerifiedStatutory Liquidity Ratio (SLR) is the minimum percentage of Net Demand and Time Liabilities (NDTL) that commercial banks are mandated to maintain in safe, liquid assets—predominantly Central and State Government securities (G-Secs/Treasury Bills). When banks invest in these securities to fulfill SLR norms, it effectively channels bank credit directly to the government.
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