Explanation:

4th option is correct.
Moral Suasion- It is just as a request by the RBI to the commercial banks to take so and so action and measures in so and so trend of the economy. RBI may request commercial banks not to give loans for unproductive purpose which does not add to economic growth but increases inflation.

Statutory Liquidity Ratio (SLR) refers to the minimum percentage of deposits that commercial banks are mandated to maintain as gold assets, cash, or government-approved securities, in their own vaults. These deposits have to be maintained by the banks themselves and not with the Reserve Bank of India.

• By definition, the SLR is the ratio of a bank’s liquid assets to their Net Demand and Time Liabilities (NDTL). The SLR is an essential instrument in the RBI’s monetary policy that helps regulate the cash flow in the economy and ensures the bank’s stability.

• SLR stands for Statutory Liquidity Ratio, which is a percentage of deposits that banks are required to maintain in the form of liquid assets such as cash, gold, and government securities. It is a monetary policy tool used by the Reserve Bank of India (RBI) to regulate the money supply in the economy.

The formula to calculate SLR is as follows:

• SLR = (Liquid assets held by the bank) / (Net demand and time liabilities (NDTL)) x 100
• To calculate SLR, the bank first needs to determine the liquid assets it holds, such as cash, gold, and government securities. The total of these liquid assets is then divided by the NDTL of the bank, which is the sum of demand and time deposits held by the bank. The result is then multiplied by 100 to convert it into a percentage.
• For example, if a bank has liquid assets worth Rs. 5,000 crore and NDTL of Rs. 10,000 crore, then the SLR can be calculated as:
• SLR = (5,000 / 10,000) x 100 = 50%
• This means that the bank is required to maintain a minimum SLR of 50% on its deposits. If the bank fails to maintain the required SLR, it may be penalized by the RBI.