Wednesday, June 3, 2015

RBI cuts repo rate by 25 bps; CRR, SLR unchanged..( WHAT IS CRR AND SLR )

RBI has cut repo rate by 25 basis points to 7.25%......the effect of interest rate cut i already posted 5 days back i think so.... Now we will see what are CRR and SLR. and better understanding about those two.......

Entire explanation is given in sheet :-

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7 comments:

  1. MA ConsultantsJune 3, 2015 at 4:08 AM

    Very help full 😉

    ReplyDelete
  2. ashokJune 3, 2015 at 4:17 AM

    Sir your email or phone number plz....

    ReplyDelete
  3. ashokJune 3, 2015 at 4:29 AM

    When the rate cut is happened by 25 basis points , it effected slr , repo , reverse repo, msf but why not crr

    ReplyDelete
    Replies
    1. CA Saikrishna SaivaJune 3, 2015 at 4:38 AM

      Hi Mr.Ashok , good doubt. i think you are CA student ri8??
      see Ashok,RBI's SLR cut won't boost lending but it will benefit banks in the long term.Reducing SLR requirement means banks can use the money they previously invested in SLR for lending to the private sector. In other words, lower SLR would mean that banks need to make lesser reserves on their incremental deposits.

      All the best & thanq for comment..

      Delete
  4. ashokJune 3, 2015 at 4:56 AM

    even if CRR comes down it will enable banks to lend more as they can maintain less CRR with rbi

    ReplyDelete

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