Latest CRR, SLR, MSF, Bank Rate, Repo Rate, Rev Repo Rates 2019

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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 on 7th February 2019. 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 for SBI Clerks, POs,  IBPS PO VI and Clerks VI Online Exams). All the Best :)

Current RBI Policy Rates 2016

S. No	Rates / Reserve Ratios	%	W.e.f
1	Bank Rate	6.50 %	7th February 2019
2	Repo Rate	6  %	7th February 2019
3	Reverse Repo Rate	5.75 %	7th February 2019
4	Cash Reserve Ratio (CRR)	4.00%	9th February 2013
5	Statutory Liquidity Ratio (SLR)	19.25 %	7th February 2019
6	Marginal Standing Facility (MSF)	6.50 %	7th February 2019

 

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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