The Reserve Bank of India (RBI) has released the Mid-Quarter Review of Monetary Policy 2012-13 today.
Giving relief to bankers, the RBI has reduced the Cash Reserve Ratio (CRR) by 25 basis points from 4.75 per cent to 4.50 per cent.
NOTE:- CRR is the amount of money that banks have to keep with RBI.
The RBI has said this cut in CRR will bring in additional liquidity of 170 billion in the banking system. CRR cut would be effective from September 22. RBI has kept all the other key policy rates unchanged.
The policy repo rate under the Liquidity Adjustment Facility - LAF remains also known as Repo Rate at 8 per cent. Consequently, the Reverse Repo Rate will remain unchanged at 7.0 per cent.
NOTE:- Repo rate is the rate at which RBI lends money to banks while the Reverse Repo rate is the rate at which RBI borrows money from banks.
The Marginal Standing Facility - MSF rate and the Bank Rate remains at 9.0 per cent.
Giving relief to bankers, the RBI has reduced the Cash Reserve Ratio (CRR) by 25 basis points from 4.75 per cent to 4.50 per cent.
NOTE:- CRR is the amount of money that banks have to keep with RBI.
The RBI has said this cut in CRR will bring in additional liquidity of 170 billion in the banking system. CRR cut would be effective from September 22. RBI has kept all the other key policy rates unchanged.
The policy repo rate under the Liquidity Adjustment Facility - LAF remains also known as Repo Rate at 8 per cent. Consequently, the Reverse Repo Rate will remain unchanged at 7.0 per cent.
NOTE:- Repo rate is the rate at which RBI lends money to banks while the Reverse Repo rate is the rate at which RBI borrows money from banks.
The Marginal Standing Facility - MSF rate and the Bank Rate remains at 9.0 per cent.
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