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).

While LRR is a broader term that encompasses both CRR and SLR (the portion of deposits banks are legally required to keep as reserves), the specific action described in the question – the RBI asking the bank to keep a certain amount as reserves – directly refers to the Cash Reserve Ratio. CRR is a component of the overall Legal Reserve Requirements.