The list of present RBI Rates (CRR, SLR, MSF,
Bank Rate, Repo Rate, Rev Repo Rates) along
with the respective dates as of 4th
March 2015. 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.
Current RBI Rates2015
S. No
|
Rates / Reserve Ratios
|
%
|
W.e.f
|
1
|
Bank Rate
|
8.25 %
|
2nd June 2015
|
2
|
Repo Rate
|
7.25 %
|
2nd June 2015
|
3
|
Reverse Repo Rate
|
6.25%
|
2nd June 2015
|
4
|
Cash Reserve Ratio (CRR)
|
4.00%
|
9th February 2013
|
5
|
Statutory Liquidity Ratio (SLR)
|
21.50%
|
3rd February 2015
|
6
|
Marginal Standing Facility (MSF)
|
8.25 %
|
2nd June 2015
|
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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