The new RBI Governor Mr. Raghuram Rajan has raised the repo rate by 25 basis points to 7.5% and reduced the MSF rate by 75 basis points to 9.5% from 10.25%. Other rates such as CRR kept unchanged in his first monetary policy review after taking over as the RBI governor.
These measure were taken to curb the inflation, tighten liquidity and arrest volatility in the foreign exchange market. The RBI also reduced the minimum daily maintenance of the cash reserve ratio from 99% of the requirement to 95%. Reserve Bank of India also said that any further change in the minimum daily maintenance of the CRR is not contemplated.
Current Rates(Updated March 22, 2014):
1) Bank Rate – 9 %
2) Repo Rate – 8 %
3) Reverse Repo Rate – 7 %
4) Cash Reserve Ratio (CRR) – 4 %
5) Statutory Liquidity Ratio (SLR) – 23%
6) Marginal Standing Facility (MSF) – 9 %
Check out the Meaning of Current Repo Rate, Reverse Repo Rate, CRR, SLR, MSF & Bank Rate below:
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