The maximum limit of SLR in India is _____.

### Concept & Fact Check The question tests knowledge of the statutory limits set by the Banking Regulation Act regarding reserve ratios maintained by Indian banks. ### Step-by-Step Solution * **Given:** Find the legally permissible maximum limit for the Statutory Liquidity Ratio (SLR). * **Fact Check:** Under Section 24 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) is authorized to specify the SLR. However, the Act clearly stipulates that the RBI cannot mandate an SLR exceeding 40% of a bank's Net Demand and Time Liabilities (NDTL). * **Conclusion:** The legal maximum ceiling for SLR is 40%. ### Exam Strategy & Shortcut Differentiate between current rates and statutory limits. While the current operational SLR might hover around 18%, the legal ceiling remains fixed by parliament at 40%. ### Common Pitfall Many candidates mistakenly choose the current prevailing SLR rate (often between 18-20%) instead of the legally defined "maximum limit" asked in the question. ### Final Answer Therefore, the correct answer is **40%**.