Net borrowing at home reaches commercial banks indirectly through which requirement?

1. The government borrows directly from the public through small savings schemes. 2. It also borrows indirectly from commercial banks. 3. That indirect route runs through the **Statutory Liquidity Ratio**, which obliges banks to hold liquid assets including government securities. 4. CRR is held as cash reserves with the RBI and does not finance government borrowing, which makes it the closest wrong answer. _Source: syllabus Introductory Macroeconomics, Ch 5 "Government Budget and the Economy", section 5.2.1 Measures of Government Deficit_