If you take a home loan, you must listen to this audio: You must have heard the terms like repo rate, the reverse repo rate, and CRR during RBI credit policy. But do you know the meaning of these words? Today we are telling you its meaning and meaning. Know these words related to the Economic Review Policies of the Reserve Bank of India.
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Repo rate
Banks give loans to customers with this loan. The low repo rate means that many types of loans from the bank will become cheap. Such as home loans, vehicle loans, etc.
Banks give loans to customers with this loan. The low repo rate means that many types of loans from the bank will become cheap. Such as home loans, vehicle loans, etc.
Reverse repo rate
Also read North East Frontier Railway Recruitment for 4499 Trade Apprentice Posts 2020As its name suggests, it is the reverse of the repo rate. This is the rate at which banks get interested on money deposited in RBI on their behalf. The reverse repo rate is used to control the liquidity of cash in the markets. Whenever there is too much cash in the market, RBI increases the reverse repo rate, so that the bank deposits its money with it to earn more interest.
CRR
Under the banking regulations applicable in the country, each bank has to keep a certain portion of its total cash with the Reserve Bank. This is called the Cash Reserve Ratio (CRR) or Cash Reserve Ratio.
Under the banking regulations applicable in the country, each bank has to keep a certain portion of its total cash with the Reserve Bank. This is called the Cash Reserve Ratio (CRR) or Cash Reserve Ratio.
It is used to control the liquidity of cash. Commercial banks are required to deposit a special amount that is used to complete an emergency transaction. When the RBI wants to reduce the liquidity of cash without changing the interest rates, it increases the CRR, leaving less money to lend to the banks.
RBI REPO RATE CUT HISTORY 2020 -2005
THE CHANGE IN REPO RATE IN INDIA SINCE OCTOBER 2005 CAN BE SUMMED UP AS FOLLOWS:
| Effective Date | Repo Rate | %Change |
| 06 Aug 2020 | 4.00% | 0.00% |
| 22 May 2020 | 4.00% | 0.40% |
| 27 March 2020 | 4.40% | 0.75% |
| 6 February 2020 | 5.15% | 0.25% |
| 07 August, 2019 | 5.40% | 0.35% |
| 06 June, 2019 | 5.75% | 0.25% |
| 04 April, 2019 | 6.00% | 0.25% |
| 07 February, 2019 | 6.25% | 0.25% |
| 01 August, 2018 | 6.50% | 0.25% |
| 06 June, 2018 | 6.25% | 0.25% |
| 02 August, 2017 | 6.00% | 0.25% |
| 04 October, 2016 | 6.25% | 0.25% |
| 05 April, 2016 | 6.50% | 0.25% |
| 29 September, 2015 | 6.75% | 0.50% |
| 02 June, 2015 | 7.25% | 0.25% |
| 04 March, 2015 | 7.50% | 0.25% |
| 15 January, 2015 | 7.75% | 0.25% |
| 28 January, 2014 | 8.00% | -0.25% |
| 29 October, 2013 | 7.75% | -0.25% |
| 20 September, 2013 | 7.50% | -0.25% |
| 03 May, 2013 | 7.25% | -0.50% |
| 17 March, 2011 | 6.75% | -0.25% |
| 25 January, 2011 | 6.50% | -0.25% |
| 02 November, 2010 | 6.25% | -0.25% |
| 16 September, 2010 | 6.00% | -0.25% |
| 27 July, 2010 | 5.75% | -0.25% |
| 02 July, 2010 | 5.50% | -0.25% |
| 20 April, 2010 | 5.25% | -0.25% |
| 19 March, 2010 | 5.00% | -0.25% |
| 21 April, 2009 | 4.75% | 0.25% |
| 05 March, 2009 | 5.00% | 0.50% |
| 05 January, 2009 | 5.50% | 1.00% |
| 08 December, 2008 | 6.50% | 1.00% |
| 03 November, 2008 | 7.50% | 0.50% |
| 20 October, 2008 | 8.00% | 1.00% |
| 30 July, 2008 | 9.00% | -0.50% |
| 25 June, 2008 | 8.50% | -0.50% |
| 12 June, 2008 | 8.00% | -0.25% |
| 30 March, 2007 | 7.75% | -0.25% |
| 31 January, 2007 | 7.50% | -0.25% |
| 30 October, 2006 | 7.25% | -0.25% |
| 25 July, 2006 | 7.00% | -0.50% |
| 24 January, 2006 | 6.50% | -0.25% |
| 26 October, 2005 | 6.25% | 00.00 |
The RBI first mentioned MSF in the Annual Monetary Policy Review in the financial year 2011-12 and this concept came into force on 9 May 2011. In this, all scheduled commercial banks can take loans up to 1 percent of their total deposits for one night. Banks get this facility on every working day except Saturday.
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