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:
|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|