To what extent did the Narasimhan Committee suggest reducing the Statutory Liquidity Ratio?

Explanation

In 1991, the recommendations of the Narasimhan Committee were submitted. The committee recommended a reduction in the Statutory Liquidity Ratio (SLR), suggesting that the SLR should be reduced in a phased manner over the next five years from 38.5 percent to 25 percent. In January 2007, the minimum limit of 25 percent for SLR was abolished, while the upper limit (40 percent) was retained. This means that SLR can now be between 0 and 40 percent. As of December 2025, SLR stands at 18 percent.