Current repo rate,CRR,SLR,MSF,Bank Rate- by RBI!

What is Repo Rate?

Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. The current repo rate is 7.50% as on 7 Oct 2013, it is an instrument of monetary policy.

What is Reverse Repo Rate?

The rate at which bank RBI borrows money from commercial banks within the country, Current reverse repo rate is 6.50% as on 7 Oct 2013.

What is Cash Reserve Ratio (CRR)?

The amount of funds that banks have to keep with RBI is called Cash Reserve Ratio (CRR), Current CRR rate is 4.00% w.e.f .09-Feb-2013.

What is Statuary Liquidity Ratio SLR?

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. Current SLR Rate is 23 % w.e.f. 11-Aug-2012.

What is MSF?

Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. Current MSF Rate is 9.00% as on 7 Oct 2013.

What is Bank Rate?

Bank rate, is the rate of interest which a central bank (RBI) charges on the loans and advances to a commercial bank. Whenever a bank has a shortage of funds they can typically borrow it from the central bank based on the monetary policy of the country. Current Bank Rate is 9.00% w.e.f. 07-Oct-2013.

What is Base Rate?

The minimum rate below which commercial bank’s are not permitted to lend money to its customers, it is the minimum rate of interest that a bank is allowed to charge from its customers, Current base rate is in between 9.70%–10.25%.

Reserve Bank of India Lucknow

Reserve Bank of India Lucknow (Photo credit: Wikipedia)

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