Banking Terms

Banking Terms 1. What is a Repo roam? A: Repo regulate is the govern at which our chamfers borrow rupees from rbi. Whenever the banks have any shortage of coin they can borrow it from RBI. A reduction in the repo outrank will help banks to get money at a cheaper rate. When the repo rate cast ups, borrowing from RBI becomes more expensive. 2. What is Reverse Repo Rate? A: 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 hawkshaw 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 ingenuous interest. An increase in Reverse repo rate can name the banks to transfer more funds to RBI due to this winsome interest rates. 3. What is CRR Rate? A: 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 system (increase of CRR rate), to drain out the excessive money from the banks.3 4. What is SLR Rate? A: SLR (Statutory Liquidity Ratio) is the amount a commercial bank involve 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 come across the expansion of bank credit. SLR is determined as the percentage of replete(p) 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 apply to control inflation and propel growth. Through SLR rate set the money supply in the system can be controlled efficiently. 5. What is Bank Rate? A: 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... If you want to get a total essay, order it on our website: Ordercustompaper.com

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