Module: | Priority Sector, Consumer Protection & Digital Lending
Q73: Evaluate the following statements regarding the "Cash" component of SLR:
1. Cash kept in a bank's own ATMs is eligible to be counted under SLR.
2. Foreign currency cash held by the bank in India is NOT eligible for SLR.
2. Foreign currency cash held by the bank in India is NOT eligible for SLR.
✅ Correct Answer: A
The correct answer is A. Statement 1 is True: The "Cash in hand" component approved for SLR maintenance specifically includes all physical cash held within the bank's own vaults as well as cash loaded into the bank's own ATMs.
Statement 2 is False: The RBI guidelines explicitly state that cash in hand includes foreign currency cash (notes and coins) held by the bank within India.
Therefore, foreign currency cash is perfectly eligible for SLR calculation, contradicting the "NOT" in the second statement.
Statement 2 is False: The RBI guidelines explicitly state that cash in hand includes foreign currency cash (notes and coins) held by the bank within India.
Therefore, foreign currency cash is perfectly eligible for SLR calculation, contradicting the "NOT" in the second statement.