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How the slr and crr influence the Indian business?
RBI lends to the commercial banks through its discount window to help the banks meet depositor's demands and reserve requirements. The interest rate the RBI charges the banks for this purpose is called bank rate. If the RBI wants to increase the liquidity and money supply in the market, it will decrease the bank rate and if it wants to reduce the liquidity and money supply in the system, it will increase the bank rate. As of 5 May, 2011 the bank rate was 6%.Cash Reserve Ratio (CRR): Every commercial bank has to keep certain minimum cash reserves with RBI. RBI can vary this rate between 3% and 15%. RBI uses this tool to increase or decrease the reserve requirement depending on whether it wants to affect a decrease or an increase in the money supply. An increase in Cash Reserve Ratio (CRR) will make it mandatory on the part of the banks to hold a large proportion of their deposits in the form of deposits with the RBI. This will reduce the size of their deposits and they will lend less. This will in turn decrease the money supply. The current rate is 6%.Statutory Liquidity Ratio (SLR): Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a larger proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is an anti-inflationary impact. A higher liquidity ratio diverts the bank funds from loans and advances to investment in government and approved securities.
Ripo rate of reserve bank of India?
Repo Rates Discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the money supply, the central bank decreases repo rates (so that banks can swap their holdings of government securities for cash), to contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired level of money supply and lets the market determine the appropriate repo rate.
How to transfer cash from Canada to UK?
Just get the person in Canada to transfer it into your UK account. They just have to tell the bank in Canada they want to 'wire some cash to the UK'. All they need is your bank details - Bank, branch, sort code and account number. The Canadian bank will electronically transfer the funds (in dollars) to the UK - and your UK bank will convert it into Sterling at the rate when the transfer takes place.
Which among the following measure of controlling inflation can be taken up byReserve Bank of India and not by Government of India?
I).Monetary Measures The most important and commonly used method to control inflation is monetary policy of the Central Bank. Most central banks use high interest rates as the traditional way to fight or prevent inflation. Monetary measures used to control inflation include: (i) bank rate policy (ii) cash reserve ratio and (iii) open market operations. Bank rate policy is used as the main instrument of monetary control during the period of inflation. When the central bank raises the bank rate, it is said to have adopted a dear money policy. The increase in bank rate increases the cost of borrowing which reduces commercial banks borrowing from the central bank. Consequently, the flow of money from the commercial banks to the public gets reduced. Therefore, inflation is controlled to the extent it is caused by the bank credit. Cash Reserve Ratio (CRR) : To control inflation, the central bank raises the CRR which reduces the lending capacity of the commercial banks. Consequently, flow of money from commercial banks to public decreases. In the process, it halts the rise in prices to the extent it is caused by banks credits to the public. Open Market Operations: Open market operations refer to sale and purchase of government securities and bonds by the central bank. To control inflation, central bank sells the government securities to the public through the banks. This results in transfer of a part of bank deposits to central bank account and reduces credit creation capacity of the commercial banks
What is the similarity between bank rate and reporate?
They both refer to the same. Repo Rate - also called Bank rate is the rate at which central banks lend loans to the member banks of a country. This rate actually impacts the rate at which these member banks grant loans to their customers
How does reserve bank of Fiji influence the policy indicator rate?
by coducting open market operation.
What is current bank rate by rbi?
Answer :-It is the rate at with Reserve bank of India allows commercial bank to borrow money from the Reserve bank of India as per their eligibility for refinance.
The rate at which the private banks lend to reserve bank of India is known as?
Bank Rate
What is the meaning of reverse repo rate?
repo rate - is the interest rate that reserve bank use to charge commercial banks repo rate - is the interest rate that reserve bank uses to charge commercial banks
Which bank refers to the rate of interest the federal reserve bank charges member banks?
discount rate
What is the other name for the central bank?
what is a reserve rate
What is repo rate?
the repo rate is the rate that the reserve bank lends money to commercial banks
How do reserve bank of India supervise other bank?
The Reserve Bank of India monitors the cash balance of different bank. The Reserve Bank sees that the banks give loans not just to earn profit but also to the small cultivators and small scale industries. The Reserve Bank of India sees that the different banks periodically submit information to it about how much they are lending to whom and at what interest rate. Such supervision is necessary keep them under control and also to see that there is no mismanagement or misappropriation of any kind in their working.
Which of the rates decided by the RBI is called Policy Rate?
Cash Reserve ratio
What is the rate of interest the Federal Reserve Bank charges member banks called?
discount rate
The rate of interest the Federal Reserve Bank charges member banks is called the .?
Discount rate
What is CLR rate of bank?
cash liquidity ratio
