News Brief | September 2014
SLR cut not to boost credit to industry
Reserve Bank of India Governor Raghuram Rajan has said the recent move by the central bank to cut the statutory liquidity ratio (SLR) will not help in expanding credit to firms in the private sector, at least for now. This is because the demand for credit from the private sector is yet to pick up, Rajan said. He however promised that the RBI would analyse the effect of the SLR cut and ensure that financing for the government (borrowing) is not disrupted. In its third bi-monthly policy statement, the Reserve Bank cut the SLR from 22.5 per cent to 22 per cent.