RBI Monetary Policy Live Updates: RBI Governor Shaktikanta Das has announced his decision on interest rates.
RBI Governor Shaktikanta Das
Reserve Bank of India (RBI-Reserve Bank of India) Governor Shaktikanta Das has decided not to increase interest rates.
repo rate-Repo rate is the rate at which RBI lends to banks. Banks give loans to customers with this loan. With the reduction in the repo rate, it means that many types of loans from the bank will become cheaper. Such as home loan, car and gold loan.
reverse repo rateAs its name suggests, it is opposite to the repo rate. It is the rate at which banks get interest on their money deposited in RBI.
CRR-Under the banking rules applicable in the country, every bank has to keep a certain part of its total amount with the Reserve Bank. This is called Cash Reserve Ratio (CRR) or Cash Reserve Ratio.
SLR-The rate at which banks keep their money with the government is called SLR. It is used to control the liquidity of cash. Commercial banks have to deposit a specific amount which is used to complete an emergency transaction. When RBI wants to reduce the liquidity of cash without changing the interest rates, it increases the CRR, this leaves less amount with the banks to lend.
MSF-RBI had first mentioned MSF in the Annual Monetary Policy Review in the financial year 2011-12 and this concept came into force on 9 May 2011. In this, all scheduled commercial banks can take loans up to 1 percent of their total deposits for one night. Banks get this facility on every working day except on Saturdays.
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