Preconditions need to be met before SLR cut: RBI chief

The proposal to tax customers at policy maturity or EET method will have an extremely adverse impact on life insurance industry.

NDTV Profit Desk

09 Mar 2012, 01:26 PM IST

Reuters

A number of preconditions need to be met before statutory liquidity ratio (SLR) can be cut, Duvvuri Subbarao, governor of the Reserve Bank of India, said on Friday.

Banks are required to invest at least 24 percent of their deposits in government bonds or other approved securities, but hold nearly 29 percent because of a lack of lending opportunities.