The term financial repression has a history of many decades in India. From the early 1970s onwards, the government has imposed a condition on the banking system called the Statutory Liquidity Ratio. As per this requirement, banks have to keep a given percentage of its NDTL (Net Demand and Time Liabilities- simply take it as deposits) as liquid assets in its vault. The governments’ objective here was that under this provision, banks will be investing a part of their money in government bonds
