Tuesday, August 19, 2014

Current Repo Rate, CRR, SLR, MSF and Bank Rates

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Providing latest and current Bank rates with Repo rate, reverse repo rate, CRR (Cash Reserve Ratio), Statutory Liquidity Ratio (SLR),  Marginal Standing Facility (MSF) in details with meaning and definition.

Current Repo Rate, CRR, SLR, MSF and Bank Rates

current Bank Rates
If you are going to appear in any of the bank exams (IBPS Clerk, IBPS PO or SBI), or even in any bank jobs interview, you must aware of these current bank rates. As these rates are commonly asked in bank jobs interviews. So, here i am providing you all the current rates and their meaning and their last updated dates.

1. Repo Rate :- Current Repo Rate is 8 per cent.

The RBI (reserve bank of india) raised its policy repo rate by 25 basis points to 8 per cent. (Increased   from 7.75% which was continuing since  29/10/2013).

What is repo rate? - Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.

2. Reverse Repo Rate :- Current Reverse Repo Rate is 7 per cent.

Reverse Repo Rate is Increased from 6.75% which was continuing since 29/10/2013. 

What is Reverse repo rate?

Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country.

3. CRR (Cash Reserve Ratio) - Current CRR rate is 4 per cent. (Decreased from 4.25%which was continuing since 30/10/2012).

What is CRR??

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country.

4. SLR (Statutory Liquidity Ratio) - Current SLR Rate is 22 per cent. (Decreased from 22.50% which was continuing since 14/06/2014).

What is SLR?

Statutory liquidity ratio (SLR) refers amount that the commercial banks require to maintain in the form of gold or govt. approved securities before providing credit to the customers.

5. MSF (Marginal Standing Facility) - Current MSF rate is 9% (Increased  from 8.75% which was continuing since 29/10/2013).

What is MSF rate?

Scheduled Commercial Banks can borrow money from RBI @1% higher than the ongoing Repo rate under liquidity adjustment facility (LAF.)

6. Bank Rate :- Current Bank Rate is 9 per cent. (Increased  from 8.75% which was continuing since 29/10/2013).

What is Bank Rate?

Bank rate is the interest rate at which a nation's central bank lends money to domestic banks. Please Remember Bank Rate is not the same thing as Deposit Rates offered by banks for fixed deposits and recurring deposits.

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