Repo Rate

Repo Rate

Definition of Repo Rate:

Repo Rate is the rate at which the central bank of a country (RBI) lends a money to commercial banks in the events of any shortfall of funds, Repo Rate is used by monetary authorities to control inflation.

 

What is repo rate by RBI

 

Repo rate is the rate of interest at which commercial banks in india borrow money from the reverse bank of india . the current repo rate is 4% announces by RBI.

 

What are SLR and CRR

 

 

SLR : Statutory liquidity ratio refers to the minimum percentage of deposits that needs to be maintained by commercial banks in the form of liquid assets  , cash , gold govt.

 

CRR: It is a portion of a commercial bank total deposits that needs to be maintaines at the central bank of the country.

 

What is MSF rate

 

MSF or marginal standing facility is a system of the reverse bank of india  that allows scheduled commercial banks to avail funds overnight. The interest rate charged by the RBI  on such borrowing is called the MSF Rate.

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