Answer / Mukta Sagar

SLR (Statutory Liquidity Ratio) and CRR (Cash Reserve Ratio) are monetary policy tools used by central banks. SLR requires banks to maintain a certain percentage of their deposits as liquid assets, while CRR mandates them to keep a portion of their deposits in reserve with the central bank. SLR differs from CRR as it applies to a wider range of liquid assets like government securities and bonds, whereas CRR only includes cash.

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