reverse repo rate..
reverse repo rate..
The CRR rate is 3% to 15% fixed by RBI.
through this rbi controls inflation and deflation.
RBI
Repo rate is the rate at which RBI lends money to scheduled banks. Its also called Repurchase rate. Reverse Repo Rate is the rate at which RBI borrows money from banks.
REPURCHASE RATE IS ALSO KNOWN AS REPO RATE Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.
the Repo rate, Reserve repo rate and CRR as of 03 January 2009 are as follows: Repo Rate: 5.6% CRR: 5% Reverse Repo rate: 4.1% Source: RBI
RBI will inject fund into the economy by using Reverse Repo rate.
6%
Repo is like a repurchase agreement.The rate at which RBI sells securities to bank. But, bank rate is the rate by which RBI lends money to commercial banks. Annu Prakash
As banks need capital for their operations & they may undergo some financial crisis. At that time banks borows money from RBI at certain rate that rate of borowing in known as REPO RATE. In some cases if bank have excess amount they deposit their amount with RBI. the rate of intrest banks get paid by RBI is REVERSE REPO RATE. Reporate Plays important role in liquidity & Inflation.
5% in December 09