pls tell me the simple explanation of bank rate, CRR, repo rate , reverse repo rate, SLR

CRR IS 6%

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Hi Sid, Please check the definitions below: Bank Rate is the rate at which central bank of the country (in India it is RBI) allows finance to commercial banks. CRR is used by central bank of the country i.e RBI, either to drain excess liquidity or to release funds needed for the economy from time to time. Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks. Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the RBI Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR). Hope this resolves your query. Feel free to put up more queries. In case your query is resolved please close this question by choosing it as a best answer or pressing the thumbs up icon. Thanks, Pooja

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