24 Oct

Latest Policy Rates of the Reserve Bank of India (RBI) – BANK RATE, REPO RATE, CRR, SLR

RBI on 4th October 2016 has slashed Repo rate by a quarter of a percent (0.25%) . This will make loans cheaper & provides greater liquidity in the market. Now banks can borrow from RBI at 6.25%.

RBI’s policy announcements has many reasons.

  • A new procedure to decide policy rates has also been adopted. An act was passed in the parliament which called for keeping the retail price inflation between 2-6 percent.
  • A committee has been formed comprising of representatives from both RBI and centre which now makes the call on key policy rates of the central bank.
  • It was for the first time that a six member committee took the decision to reduce the repo rate and this decision was a unanimous one.

Latest Policy Rates of the Reserve Bank of India (RBI)

Check Current Policy Rates & Reserve Ratios of Indian Banking as on 24nd October 2016:

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S. No Rates / Reserve Ratios % W.e.f
1 Bank Rate 6.75% 4th October 2016
2 Repo Rate 6.25% 4th October 2016
3 Reverse Repo Rate 5.75% 4TH October 2016
4 Cash Reserve Ratio (CRR) 4.00% 9th February 2013
5 Statutory Liquidity Ratio (SLR) 20.75% 4th October 2016
6 Marginal Standing Facility (MSF) 6.75% 4th October 2016

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