PSC Question BankUpdated on OCTOBER 2015.
Current Rates in India and definition
Bank Rate : 7.75%
The bank rate, also known as the discount rate, is the rate of interest charged by the RBI for providing funds or loans to the banking system.
Cash Reserve Ratio(CRR) : 4%
Cash Reserve Ratio is a certain percentage of bank deposits which banks are required to keep with RBI in the form of reserves or balances.
Repo rate : 6.75%
Repo rate is the rate at which RBI lends to commercial banks generally against government securities.
Reverse Repo rate : 5.75%
Reverse Repo rate is the rate at which RBI borrows money from the commercial banks.
Marginal Standing facility rate(MSF) : 7.75%
Marginal Standing Facility (MSF) rate refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities. MSF is a very short term borrowing scheme for scheduled commercial banks.
Statuatory Liquididty Ratio(SLR) : 21.5%
Statutory liquidity ratio (SLR) is the reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers.
