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

1. Banks are required by the central bank (RBI in India) to maintain a certain portion of their Net Demand and Time Liabilities (NDTL) in the form of liquid assets. 2. These liquid assets include cash, gold, and approved securities (like government bonds). 3. This mandatory ratio is called the Statutory Liquidity Ratio (SLR). 4. SLR ensures the solvency of banks and restricts their lending capacity. 5. The question asks for the ratio between cash in hand and total assets, which is slightly imprecise. SLR refers to liquid assets (including cash) as a ratio of NDTL. Cash Reserve Ratio (CRR) is the ratio of cash maintained with RBI to NDTL. However, among the options, SLR is the most relevant regulatory liquidity requirement imposed on banks involving holding assets including cash.