Commercial banks are required to maintain a specific proportion of their net demand and time liabilities in liquid assets like cash, gold, or unencumbered securities. This is called:

Statutory Liquidity Ratio (SLR) is the mandatory reserve requirement that commercial banks in India must maintain in the form of liquid assets (cash, gold, or approved government bonds) before providing credit to customers, as prescribed under Section 24 of the Banking Regulation Act, 1949.