#Economics

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Why SLR is being reduced even in inflationary times ?

Angel 2nd Dec, 2017

Answer (1)

Anunay Singh Tomar 13th Jan, 2018

because govt is recklessly spending money in subsidy which in turn increase money supply.

as we know in slr we have quota of govt securities which banks have to buy which in turn gives money to govt for spending thats why rbi is reducing slr which in turn reduces quota of govt securities and less money to govt

i hope you got the answer

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