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What else can I help you with?
Monetary policy of India?
means latest crr, repo rate,revers repo rate, bank rate ,slr
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 are the three main instruments used in monetary operations?
NOTE- Although answer of the asked question starts for the number 2 Monetary Policy, i am giving a little bit more in-detail information with an intension to give a broader persepetive to the asked question...Governments of any countries use the 2 broad polices- below mentioned- as a control measure of the economy :1. Through Fiscal policy(Regualte by the government of the country) - Set of programs run by a government in the welfare of the people of the country. Under monetary policy a govnt decides on how much is to be spent on the development activities of the country, decision on different types of tax rates etc. By increasing or decreasing the tax rates, the government controls the level of expenditures of the people.2. Monetary Policy (Regulated by the central bank of the country ) - Its the control over money supply in the economy. This help to control inflation in a country. 3 broad instruments are :A) Opent Market Oportunity - Purchase or sale of governemt bonds by the central bank.B) Reserve Requirement - Using this istrument a governt controls money supply into the economy and hence indirectly controlling the inflation. Under reserve requirements (like, Cash reserve ratio, SLR, C/D etc.) banks of a country are required to keep either the percentage of their deposits as a reserve either with the central bank of the country (RBI in case of India) or invest a definite percentage of their total working capital (like cash) in the government bonds. As a result of these, banks are left with less money available with them to lend. When reserve rates are inceased, the money availble in the economy is less and hence demand decrease.C) Repo and reverse repo rate - Repo rate is the rate at which government lends money to the commercial banks. Repo rate is simillar to bank rate. The only difference is that repo rate is the rate in imergecy money demand by the banks where as bank rate is the rate implied at normal situations.Reverse repo rate is the reverse of the repo rate. The intension of this two rates are to restrict the banks from amount of money they inturn can lend to the consumers.
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.
