I do not want to dwell deep into the pros and cons of these strategies now, but as a general remark it is fair to say that, among central bankers and leading scholars, there is, at least so far, no emerging consensus for any of these proposals.
Although the envisaged reduction in the required SLR was expected to enable banks to expand credit to the private sector, banks continued to make investments in Government securities much in excess of the statutory minimum stipulated requirements. The SLR holdings of commercial banks reached almost 42.7 per cent by April 2004.