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how does the CRR, Repo Rate, reverse repo rate and bank
rate related with inflation and discuss the relation.
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Answer Posted / srija
CRR- CASH RESERVE RATIO. THE PORTION OF DEPOSIT BALANCE
THAT THE BANK HAS TO KEEP IN RESERVE AS CASH IN HAND. THE
CRR RATIO IS DETERMINED BY RBI. THE PRESENT CRR RATE IS
6.5%. WHICH WAS AT 9% AT THE BEGINING OF THIS MONTH.
REPO RATE- IT IS THE RATE AT WHICH THE BANK BORROWS MONEY
FROM RBI.
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