The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

Correct Option (b):

The Statutory Liquidity Ratio (SLR) refers to the proportion of a bank's Net Demand and Time Liabilities (NDTL) that it is statutorily required to maintain in the form of liquid assets. These assets typically include cash in hand, gold, and unencumbered approved government securities. Unlike the Cash Reserve Ratio (CRR), the SLR is maintained by the bank itself and not deposited with the Reserve Bank of India (RBI). Its primary purposes are to ensure the liquidity and solvency of commercial banks, control credit expansion in the economy, and contribute to overall financial stability.

Incorrect Options:

SBR (Statutory Bank Ratio): This term is not a recognized or standard concept in Indian banking or monetary policy.

CBR (Central Liquid Reserve): This is not an officially used term in the context of Indian banking regulations or monetary policy.

CLR (Central Liquid Reserve): This term is not a valid or recognized concept in monetary policy. The related statutory reserve requirement for maintaining a portion of deposits as cash with the central bank is the Cash Reserve Ratio (CRR).