Banking will provide a new and wide field in which the genius of our young men can find full play. I am sure that they will come forward in large numbers to take advantage of the training facilities which are proposed to be provided. While doing so, they will not only be benefiting themselves but also contributing to the well-being of our State.
Quaid-i-Azam's Speech
On the occasion of the Opening Ceremony of
The State Bank of Pakistan on 1st July, 1948.
Yes, Quaid we are Ready...
Quote:
Originally Posted by eeriesilence
Thank you for answering the questions Gandalf Sir. Sir I had asked you if you had any ideas about CRR, SLR and PLR. As far as I know, SLR is for both money kept as reserves and liquid assets, but I am not sure about the exact ratio. Moreover, what is the dead line for their liquidity?
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CRR is Cash Reserve Requirement it is 5% of Total Demand Liabilities.
it also includes time Liabilities.
Demand Liabilities
Demand Liabilities include all liabilities which are payable on demand that include current deposits, demand liabilities portion of savings bank deposits, margins held against letters of credit/guarantees, balances in overdue fixed deposits, cash certificates and cumulative/recurring deposits, outstanding Telegraphic Transfers (TTs), Mail Transfer (MTs), Demand Drafts (DDs), unclaimed deposits, credit balances in the Cash Credit account and deposits held as security for advances which are payable on demand. Money at Call and Short Notice from outside the Banking System should be shown against liability to others.
Time Liabilities
Time Liabilities are those which are payable otherwise than on demand that include fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of savings bank deposits, staff security deposits, margin held against letters of credit, if not payable on demand, deposits held as securities for advances which are not payable on demand and Gold deposits.
Other Demand and Time Liabilities (ODTL)
Other Demand and Time Liabilities (ODTL) include interest accrued on deposits, bills payable, unpaid dividends, suspense account balances representing amounts due to other banks or public, net credit balances in branch adjustment account, any amounts due to the "Banking System" which are not in the nature of deposits or borrowing. Such liabilities may arise due to items, like (i) collection of bills on behalf of other banks, (ii) interest due to other banks and so on. If a bank cannot segregate the liabilities to the banking system, from the total of "Other Demand and Time Liabilities" (ODTL) the entire 'Other Demand and Time Liabilities' may be shown against item II (c) 'Other Demand and Time Liabilities' of the return in Form 'A' and average CRR is required to be maintained on it by all Scheduled Commercial Banks.
Participation Certificates issued to other banks, the balances outstanding in the blocked account pertaining to segregated outstanding credit entries for more than 5 years in inter-branch adjustment account, the margin money on bills purchased / discounted and gold borrowed by banks from abroad, also should be included in ODTL.
SLR is Statutory Liquidity Ratio. i.e. Minimum Amount which a bank should keep in form of Assests with itself to meet the day to day requirements of Customers.
PLR is Prime Lending Rate i.e. the Interest rate charged to the most secured and creditworthy customers. which is currently estimated to 11% to 12%.
The information is collected from internet.