Statutory Liquidity Ratio indicates the minimum percentage of total demand and liabilities the banks has to maintain as liquid assets at the close of every business day to support any sudden increase in withdrawal and cash demand. The liquid assets can be in the form of cash, gold and government approved securities. It is an efficient monetary policy tool and the benefits it provides are
CRR uses total deposit as the reference while SLR uses the total demand or liabilities as the reference while calculating the money to be held. This is the main difference between SLR and CRR.