What are non SLR securities?

NON SLR Investments. Non-SLR Papers include bonds issued by Public Sector Undertaking and other corporate bodies. PSU Bonds are debt instruments issued by various public sector units of the country. These can be of two categories: Tax Free.

What are fixed deposits classified as?

Fixed deposits invested in banks for less than one year are current assets. Fixed deposits invested in banks for longer than one year are non-current assets. A current asset is any asset that will provide an economic benefit within one year.

What are SLR and Non SLR?

The ratio of prescribed liquid investments to deposits is termed as statutory liquidity ratio. In India, banks invest in bonds issued by the government and notified by the Reserve Bank of India as qualifying for SLR to meet the prescribed ratio.

Is fixed asset a non current asset?

Fixed assets, which are noncurrent assets, are long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income. They are not expected to be consumed or converted into cash within one year, are subject to depreciation, and are illiquid.

Is fixed deposit an income or expense?

Fixed Deposit is an asset . It may be classified under the group of Long Term Investments . But it can be turned to cash in a short time!

What is SLR and Non-SLR investments?

In India, banks invest in bonds issued by the government and notified by the Reserve Bank of India as qualifying for SLR to meet the prescribed ratio. RBI treats both loans extended by commercial banks and the non-SLR investments as a resource flow to the commercial sector.

What is non-SLR investment in banking?

The non-Statutory Liquidity Ratio (SLR) investments are those where the return is based on the prospects of the commercial market. Apart from core business i.e lending, the bank makes some investment in bonds, capital Market, Mutual fund, Commercial paper etc. Limit of investment on Non-SLR investment is prescribed on RBI time to time.

What is fixed deposit (FD)?

Fixed deposit is an investment vehicle which allows investors to put their idle money into and turn it into guaranteed returns. These returns are calculated at fixed FD rates in a specific time period ranging from 7 days to up to 10 years (20 years in some cases.)

Is a fixed deposit a current or non current asset?

A fixed deposit may be a current or non-current asset for accounting purposes. Fixed deposits invested in banks for less than one year are current assets. Fixed deposits invested in banks for longer than one year are non-current assets. A current asset is any asset that will provide an economic benefit within one year.

What is the SLR of a defaulter bank?

The defaulter bank has to pay a penalty of 3\% above the bank rate on the deficient amount for that particular day. SLR plays a very important role in fixing the minimum rate at which a bank can lend money to its customers. This minimum amount is called the base rate.