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Tuesday, July 9, 2013

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

61 comments

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Friends, here is the list of present RBI Rates (CRR, SLR, MSF, Bank Rate, Repo Rate, Rev Repo Rates) along with the respective dates as of 3rd June 2014. If you have any confusion regarding  the terminology mentioned below, you can refer to the detailed short notes given at the end of the table. Hope it will be helpful for your upcoming competitive exams (especially SBI PO, Clerks and RBI Grade B Officers Exams). All the Best :)

Current RBI Rates


S. No
Rates / Reserve Ratios
%
W.e.f
1
Bank Rate
9 %
28th January 2014
2
Repo Rate
 8 %
28th January 2014
3
Reverse Repo Rate
7 %
28th January 2014
4
Cash Reserve Ratio (CRR)
4.00%
9th February 2013
5
Statutory Liquidity Ratio (SLR)
22.50%
3rd June 2014
6
Marginal Standing Facility (MSF)
9%
28th January 2014
 

Explanations :

Bank Rate

Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply.

Repo Rate

Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive.

Reverse Repo Rate

This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system. Banks are always happy to lend money to RBI since their money is in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates.

CRR

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.


SLR

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. SLR is determined as the percentage of total demand and percentage of time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime demand. SLR is used to control inflation and propel growth. Through SLR rate tuning the money supply in the system can be controlled efficiently.

Marginal Standing Facility (MSF)

Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. The basic difference between Repo and MSF scheme is that in MSF banks can use the securities under SLR to get loans from RBI and hence MSF rate is 1% more than repo rate.

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61 comments:

  1. gud work guyzzzzzzzzzz

    ReplyDelete
  2. BPS Specialist Officer: Final Allotment Result Declared....

    http://www.ibps.in/career_pdf/CWE_SPL_II_Allotment.pdf

    Thnx & regards,
    Sagar Toliya

    ReplyDelete
  3. Ibps splst offcrs final results r out...all d best

    ReplyDelete
  4. Thanks to gr8ambitionz.com

    ReplyDelete
    Replies
    1. Thank very much to gr8ambitionz for providing detailed notes

      Delete
  5. notic regrding allotment process against cwe spl 2
    http://www.ibps.in/career_pdf/CWE_SPL_II_Allotment.pdf

    ReplyDelete
  6. good work.... very useful.....

    ReplyDelete
  7. good work . very useful.....

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  8. great work guys ...your website is very useful

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  9. BANK RATE AND MSF RATE HAS BEEN CHANGED TO 10.25........... CHECK RBI OFFICIAL WEBSITE

    ReplyDelete
    Replies
    1. Thank you so much for the update Surendran :)

      Delete
  10. thanq very much mam for this update..........

    ReplyDelete
  11. thank you,please jelp as i am not able to search my topics

    ReplyDelete
  12. thanku very much..it will help alot for me...

    ReplyDelete
  13. Its Gud Work to everybody one who gives this usefulful information for exams. I appreciate to one at all.

    ReplyDelete
  14. nice explanation.......thank you sir.........

    ReplyDelete
  15. RBI hikes repo rate to 7.5%, reduces MSF rate to 9.5%

    ReplyDelete
    Replies
    1. Thank you so much for the update Kalika :)

      Good day

      Delete
  16. Its a valuable data for upcoming IBPS exams

    ReplyDelete
  17. really its very useful.....great work......

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  18. hi sir, thanks 4 taking this much efforts to make each points so simple & understandable . really awesome ! ! words are not enough .very helpful :)

    ReplyDelete
  19. plz discuss about latest technology used in banking sector

    ReplyDelete
  20. mam, plz check the SLR its 24.5% changed in 13/14 of august.. I have read in pratiyogita darpan of last month

    ReplyDelete
    Replies
    1. No Abhijeet, as far as I know It remained unchanged from 11th August 2012 (before that it was 24%). Anyways, i will check it once and correct it if it is wrong.

      Delete
  21. Repo Rate: 7.75
    Reverse Repo rate: 6.75
    MSF: 8.75

    ReplyDelete
  22. Dear RBI governor, Why you are always changing the bank rates, its a difficult to remember the new one.. so put it as a constant...

    ReplyDelete
    Replies
    1. hello ANJU r u in right senses while typing the above comment???
      r u nuts???
      u are ready to sacrifice our nation's economic policies just for the sake of your awesome memory. i pity u

      Delete
  23. Really ur post is useful.................

    ReplyDelete
  24. thank you very much gr8ambitionz. ur post is really useful.

    ReplyDelete
  25. Excuse me mam,tell me the exact difference between bank rate & repo pate
    in some banking materials "bank rate is lend for short term" and in some materials "bank rate is lend for long term"
    which one is correct?

    ReplyDelete
  26. definitions are not elaborate enough !!!

    ReplyDelete
  27. continue the gr8 work!!!

    ReplyDelete
  28. New bank rate is 9%.
    Previous bank rate was 8.75%.

    ReplyDelete
  29. MPORTANT RATES AND DATA AS AT 28/1/2014:

    BANK RATE 9.00%

    REPO RATE 8.00%

    REVERSE REPO RATE 7.00%

    MARGINAL STANDING FACILITY 9.00%

    THE RATES RAISED BY 0.25% W.E.F 28/01/2014

    CRR 4%

    SLR 23%

    ReplyDelete
  30. you provide very clear information. thank you

    ReplyDelete
  31. Thanx..its very useful

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  32. one confusion...if any body help me out...what is the requirement of MSF to borrow a fund from RBI with higher interest if there is another financial instruement available (repo) with 1% lower interest? please clarify if any body knows...thank u

    ReplyDelete
  33. what is the difference between bank rate and repo rate?

    ReplyDelete
  34. mam i m confuse between policy rate and lending or deposit rate so plzzz explain the main difference between policy rate and lending or deposit rate........

    ReplyDelete
  35. mam i m confuse between policy rate and lending or deposit rate so plzzz explain the main difference between policy rate and lending or deposit rate........

    ReplyDelete
  36. mam i m confuse about the main difference between policy rate and lending or deposit rate so plzz tell me that what is the main differnet between policy rate and lending or deposit rate......... i m waiting 4 ur reply......

    ReplyDelete
  37. what is character certificate and from where can i get it

    ReplyDelete
  38. kindly mention about marginal standing rate and short term lending rate

    ReplyDelete
  39. kindly mention about marginal standing rate and short term lending rate

    ReplyDelete
  40. THANKU SO SO MUCH

    ReplyDelete
  41. Hi madam,

    What is the difference between bank rate and repo rate? I thought that they are same. Could you explain me in detail?

    Thank you.

    ReplyDelete
  42. pls tell me the exact current rate values...

    ReplyDelete

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