RBI raises SLR to 25%

The Reserve Bank on Tuesday raised statutory liquidity ratio, the portion of deposits that banks are required to keep in government securities, by 100 basis points to 25 per cent.

The RBI, however, kept other key rates and ratios like repo, reverse repo and cash reserve ratio unchanged.

The decision to raise SLR, in the second quarterly review of the credit policy, is aimed at reducing liquidity and fighting the inflationary expectations, which has started building up, especially in the case of food items.