Candidates who are preparing for the banking interview or banking
exam they should have a clear knowledge about different banking rates in
Indian banking system. Here we have updated
all Banking Rates' basic definition.
Different Indian Banking Rate:
In Indian banking system there are 6 types of banking rates.
Commercial banks have to hold as reserves certain some of percentage of money either in cash or as deposits with the central bank means RBI.
RBI decreases CRR for the economic growth of our country.There is no maximum or minimum limit of CRR.
Repo-Rate :
RBI lends to the commercial bank to meet their short term needs.
Reverse Repo Rate :
RBI borrow money from commercial bank for keeping securities as collateral.
Bank Rate :
RBI charge certain interest rate on commercial bank for long term loan for rediscounting of the bills and commercial paper.
Marginal Standing Facility (MSF) :
Scheduled bank borrow funds overnight from RBI against approved government securities. This loan is provided for only 1 day.
Statutory Liquidity Ratio :
Commercial bank deposits government securities gold and cash as SLR. The maximum SLR rate 40 %. The minimum loan approved by RBI under MSF 1 Crore.
Hope these will be useful and helpful for you.
Related Banking Awareness Notes-
Different Indian Banking Rate:
In Indian banking system there are 6 types of banking rates.
- CRR-Cash Reserve Ratio
- Repo-Rate
- Reverse Repo Rate
- Bank Rate
- MSF- Marginal Standing Facility
- SLR- Statutory Liquidity Ratio
Details about Different Indian Banking Rates
Cash Reserve Ratio (CRR):Commercial banks have to hold as reserves certain some of percentage of money either in cash or as deposits with the central bank means RBI.
RBI decreases CRR for the economic growth of our country.There is no maximum or minimum limit of CRR.
Repo-Rate :
RBI lends to the commercial bank to meet their short term needs.
Reverse Repo Rate :
RBI borrow money from commercial bank for keeping securities as collateral.
Bank Rate :
RBI charge certain interest rate on commercial bank for long term loan for rediscounting of the bills and commercial paper.
Marginal Standing Facility (MSF) :
Scheduled bank borrow funds overnight from RBI against approved government securities. This loan is provided for only 1 day.
Statutory Liquidity Ratio :
Commercial bank deposits government securities gold and cash as SLR. The maximum SLR rate 40 %. The minimum loan approved by RBI under MSF 1 Crore.
Hope these will be useful and helpful for you.
Related Banking Awareness Notes-
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