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Monetary policy of India?
means latest crr, repo rate,revers repo rate, bank rate ,slr
What is the negative carry on CRR and SLR?
Negative carry on Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) occurs when the returns on the assets held to meet these requirements are lower than the cost of maintaining them. For example, banks must hold a portion of their deposits in non-interest-bearing reserves or in low-yield government securities, which can lead to a situation where the opportunity cost outweighs the returns, resulting in negative carry. This can impact a bank's profitability, as funds that could be invested for higher returns are instead tied up in low-yield assets.
How SLR reduction affects Indian economy?
Statutory Liquidity Ratio or SLR is the proportion of deposits that banks have to maintain in the form of investments in cash, gold or government paper. In due course of time, the SLR cut is likely to ease pressure on the banks and allow for more room for private lending. Although there is no immediate need for liquidity infusion, there is a subtle liquidity pressure because of the gap between credit growth rate and deposit growth rate. Over the next few months, that pressure might re-emerge as deposit growth might be slower than credit growth. So, by reducing SLR now, banks can plan ahead as opposed waiting for a policy action when the pressure becomes visible. The SLR cut has created capacity, although there is no immediate liquidity infusion.
What do you mean by SLR rate in bank and what is it rate percentage?
Statutory Liquidity Ratio or SLR as it is more commonly called is the amount of liquid cash every bank has to maintain in order to meet the daily customer withdrawal demands. Whatever money we deposit with banks, they lend it out to other customers to make a profit out of it. Imagine you depositing a few lakh rupees out of your retirement corpus with a bank and visiting the bank to withdraw some money to get a gift for your grandson and the bank telling you that since the loan re-payments were not received on time, you can't take money out of your account right now? That would be bad wouldn't it? This is exactly why banks have to maintain a SLR so that they don't have to refuse withdrawal transactions from deposit customers. It's your money and you should be able to withdraw it anytime you want.
Explain Credit control by RBI on commercial bank?
Credit Control of RBI(briefly) Need: 1.To encourage the priority sectors for overall growth 2.Fecilitate the flow of adequate volume of bank credit to its industry, Agriculture and trade 3.To keep Inflation pressure under check 4.To ensure that Credit is not diverted to undesirable purposes 5.To fecilitate the Development of Indian economic growth Types of credit control : 1)Quantitative Method 1.Bank rate policy: by controlling the ways and means advances to the govt. 2.Open Market operation: by controling Short term liquidity in the market. 3.variation of cash reserve ratio: by increasing or reducing CRR or SLR. 4.fixation of lending rate: control by Increasing or reducing the rate of primary or secondary lending rates 5.Credit sequeenze: by controlling the amount of bank credit at a certain limit and fixing maximum limit for commercial borrowings. 2)Qualitative Method 1.Fixation of Margin Requirement 2.Regulation of consumer credit 3.Rationing of credit 4.Prior authorisation of schemes 5.Moral sausion 6.Direct Action
What is the current CRR and SLR rate of Bangladesh for 2012?
crr=6% slr=19%
What is the current CRR and SLR in Bangladesh in 2013?
In 2013, the CRR in Bangladesh was 4%. In the same year, the SLR for Bangladesh was set at 23%.
What is current cash reserve ratio and SLR ratio?
As on 19th aug, 09 CRR is 5% and SLR is 24% You can get the latest CRR and SLR from http://www.rbi.org.in/home.aspx
What is current CRR of Pakistan?
present CRR = 5.25 % SLR = 25.0 % These rates are subjected to change quarterly
Monetary policy of India?
means latest crr, repo rate,revers repo rate, bank rate ,slr
Is CRR is included in SLR?
yes
What is negative carry on CRR and SLR?
Negative carry on CRR and SLR balances arises because the return on CRR balances is nil, while the return on SLR balances (proxied using the 364-day Treasury Bill rate) is lower than the cost of deposits. Negative carry on CRR and SLR is arrived at in three steps. In the first step, return on SLR investment was calculated using 364-day Treasury Bills. In the second step, effective cost was calculated by taking the ratio (expressed as a percentage) of cost of deposits (adjusted for return on SLR investment) and deployable deposits (total deposits less the deposits locked as CRR and SLR balances). In the third step, negative carry cost on SLR and CRR was arrived at by taking the difference between the effective cost and the cost of deposits.
What is the current SLR rate of India?
Current SLR of RBI is 23% with effect from 01/08/2012.
What is CRR and SLR in pre reform period?
SLR- Statutory Liquid ratio- is the minium amount of liquid assets a bank must retain. CRR-Cash reserve ratio - is the minium amount of money a bank should retain in form of cash or hard currency.
What is the difference between CRR and SLR?
CRR stands for Cash Reserve Ratio - The amount of money each bank has to maintain as deposits with the central bank SLR - Statutory Liquidity Ratio - The amount of money each bank has to maintain as liquid cash to meet its daily cash requirements.
What is current SLR rate by RBI?
Presently, the SLR is 25% with effect from 7 November, 2009. It was raised from 24% in the RBI policy review on 27 October, 20109.
What is the current Statutory liquidity requirement of Commercial bank in Bangladesh?
19.0 percent of their total demand and time liabilities on daily basis, inclusive of average 6.0 percent (at least 5.5 percent in any day) Cash Reserve Ratio (CRR) on biweeklybasis. The CRR is to be kept with the BB and the remainder as qualifying unencumbered assets, either in cash or in Government securities. The SLR for the banks operating under the Islamic Shariah is 11.5 percent (inclusive of average 6.0 percent CRR on bi-weekly basis and at least 5.5 percent in any day). The specialised banks are exempted from maintaining the SLR.
