1) what is the meaning of bank rate in india ?
ans :-Bank rate in India is determined by Reserve Bank of India (RBI). It is the rate at which RBI gives loan to commercial banks with collateral ( RBI act 1934 sec.49 ) The RBI also provides short term loans to its clients (keeping collateral) which is called the repo rate.
2) what is repo rate in india?
ans :-Definition: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
3) People also ask
What is the meaning of Bank Rate in India?
Bank rate in India is determined by Reserve Bank of India (RBI). It is the rate at which RBI gives loan to commercial banks with collateral ( RBI act 1934 sec.49 ) The RBI also provides short term loans to its clients (keeping collateral) which is called the repo rate.
4)What is the difference between repo rate and bank rate?
Loan vs. Securities – As already discussed, bank rate usually deals with loans, whereas, repo or repurchase rate deals with the securities. The bank rate is charged to commercial banks against the loan issued to them by central banks, whereas, the repo rate is charged for repurchasing the securities.
5)What is repo in bank?
A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.
6)What is the meaning of CRR in banking?
CRR is a cash reserve ratio and SLR is statutory liquidity ratio. Under CRR a certain percentage of the total bank deposits has to be kept in the current account with RBI which means banks do not have access to that much amount for any economic activity or commercial activity.Jan 23, 2014
7)What is the SLR and CRR?
Cash Reserve Ratio (CRR): Each bank has to keep a certain percentage of its total deposits with RBI as cash reserves. Statutory Liquidity Ratio (SLR): Amount of liquid assets such as precious metals(Gold) or other approved securities, that a financial institution must maintain as reserves other than the cash.
8)What is current repo rate in India?
Key Indicators
Indicator | Current rate |
---|---|
SLR | 20% |
Repo rate | 6.0% |
Reverse repo rate | 5.75% |
Marginal Standing facility rate | 6.25% |
2 more rows
9)What do you mean by CRR?
Definition of 'Cash Reserve Ratio' Definition: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.CRR is set according to the guidelines of the central bank of a country.
10)What is the meaning of repo rate and reverse repo rate?
Definition: Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.
11)What is the current repo rate?
Banks earn interest on such funds. Current CRR, SLR, Repo and Reverse Repo Rates: The current rates are (as of last week of December 2015) - CRR is 4 % , SLR is 21.50%, Repo Rate is 8% and Reverse Repo Rate is 7%.Jul 4, 2016
12)What is repo rate in India?
Definition: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
13)What is the difference between base rate and bank rate?
A Base rate is defined as the rate at which RBI allows finance to banks . Thebanks cannot lend below the base rate to the customer . RBI's interest rate is thebase rate at which it lends to the commercial banks . ... example - Personal loan (base rate + 2 % ) would mean 12% if base rate is 10% .
14)What is MSF rate in banking?
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.
15)What is the SLR?
Statutory liquidity ratio (SLR) is the Indian government term for 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.
16)What is the full form of repo rate?
Full Form of REPO. ... REPO is used with respect to banks; full form of REPO is repurchase agreement. Under this system a bank can borrow money from RBI with the intention of paying back that money at a future date with interest. REPO rate is fixed by reserve bank of India; current REPO rate is 8 percent.Aug 1, 2012
17)What is liquidity reserve ratio?
The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank.
Reserve requirement - Wikipedia
https://en.wikipedia.org/wiki/Reserve_requirement
Search for: What is liquidity reserve ratio?
What is the definition of base rate?
Definition: Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers. Description: Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers.
18)What is a repurchase agreement Example?
Definition of repurchase agreement. A repurchase agreement, or repo for short, is a type of short-term loan much used in the money markets, whereby the seller of a security agrees to buy it back at a specified price and time. The seller pays an interest rate, called the repo rate, when buying back the securities.
19)What is a reverse repo transaction?
The Fed uses repurchase agreements, also called "RPs" or "repos", to make collateralized loans to primary dealers. In a reverse repo or "RRP”, the Fed borrows money from primary dealers. The typical term of these operations is overnight, but the Fed can conduct these operations with terms out to 65 business days.
20)What is the meaning of SLR camera?
A digital single-lens reflex camera (also called a digital SLR or DSLR) is a digital camera that combines the optics and the mechanisms of a single-lens reflexcamera with a digital imaging sensor, as opposed to photographic film.
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