RBI bank rate, repo rate , reverse repo rate, new rates of
rbi, key rates of rbi, rBI monetary policy
RBI (Reserve Bank of India) changes the Key Rates: RBI (Reserve Bank of India) changed the key rates on
02nd June, 2015. The new rates are as
follows:
New Key Rates:
1) Bank Rate: 8.25%
2) Repo Rate: 7.25%
3) Reverse Repo Rate: 6.25%
4) CRR: 4% (not changed)
BANK RATE : This is the rate at which central bank i.e. RBI
(Reserve Bank Of India) lends money to other banks or financial institutions
for long term i.e. more than 90 days.
CRR : Cash reserve Ratio (CRR) is the amount of funds that
the banks have to keep with RBI in the for of cash. If RBI decides to increase
the percent of this, the available amount with the banks comes down. RBI is using this to drain in or out the excessive money from the banks.
REPO RATE : This is the rate at which central bank i.e. RBI
(Reserve Bank Of India) lends money to other banks or financial institutions
for short term i.e. less than 90 days. Repo rate is also called (repurchase
agreement or repurchase option).
REVERSE REPO RATE : This is the interest rate earned by the
bank for lending money to the RBI in exchange of govt. securities or
"lender buys securities with agreement to sell them back at a
predetermined rate".
