Sunil Kumar went to his bank to deposit ₹10,00,000. On acceptance of this deposit by the ICICI Bank, RBI asked the ICICI bank to keep ₹2,00,000 as reserves. The amount of ₹2,00,000 represents :

Cash Reserve Ratio (CRR)

The correct answer is option (3) : Statutory Liquidity Ratio (SLR)

The RBI decides a certain percentage of deposits which every bank must keep as reserves. This is done to ensure that no bank is ‘over lending’. This is a legal requirement and is binding on the banks. This is called the ‘Required Reserve Ratio’ or the ‘Reserve Ratio’ or ‘Cash Reserve Ratio’ (CRR).

Statutory Liquidity Ratio (SLR) is a requirement that commercial banks have to keep a certain proportion of their demand and time deposits as liquid assets in their vault.  In the context of SLR, liquid assets mean assets in the form of cash, gold and approved securities (government securities).