Answer Posted / sai laxmi

Bank rate:-
Bank rate is the rate at which RBI lends money to other banks or financial institutions or commercial banks. If bank rate is increased by RBI, then all banks will also hike their own lending rates such as deposit rates and prime lending rates etc.......Bank rate is also known as the discount rate and it is the oldest instrument of monetary policy. The bank rate policy seeks to affect both the cost and availability of credit.

CRR:-
CRR is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes. Banks in India are required to hold a certain proportion of their deposits in the form of cash. However, actually banks don't hold these as cash with themselves, but deposit such case with RBI, which is considered as equivalent to holding cash with themselves. These reserves are designed to satisfy withdrawal demands, and would normally be in the form of authorized currency stored in a bank vault or with RBI. The reserve ratio is sometimes used as a tool in the monetary policy, influencing the country's economy, borrowing and interest rates. CRR is also known as cash asset ratio or liquidity ratio. The RBI is empowered to vary CRR between 3% and 20% respectively.

SLR:-
Every bank is required to maintain at the close of business every day, a minimum proportion of their net demand and time liabilities as liquid assets in the form of cash, gold or approved securities. This percentage is fixed by RBI. The maximum and minimum limits for the SLR are 40% and 25% respectively.

Repo Rate:-
It is also called as repurchase rate. It is the rate at which RBI lends short term money to the banks. When the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will halp banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes expensive.

Reverse Repo rate:-
Reverse repo rate is the rate at which RBI borrows money from banks. When liquidity or cash floating is excess in banks, RBI sucks it out by reverse repo by lending securities and taking out money from banks.

Hii I HV been selected for federal manipal gd n interview how shall I prepare.. Pls help me!

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Hi I have been selected for central bank of India Po.My interview is on 23 nov 2010.I have done B.E.(CS) in 2007.I have one year experience but for 2 yrs i dont have experience also I am not doing any job.Will they reject me.also please tell me some technical questions that they can ask me.

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hi i want to know the model papers for bank exams clerical cader.

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can any bank PO aspirant tell me what should be the ideal answer to these questions asked usually in interview. 1.why banking 2.how commerce can help in banking 3.As I am a commerce graduate i want to know what to prepare in subject or what are questions generally related to account subject asked in bank po interview.please help me friends .reply as soon as possible. if U could suggest me i on any above questions i would be really grateful to U

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does anyone got the oriental bank of commerce joining letter please let me know .

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2525

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why do you want to join as a Probationary Officer after doing mba?

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THOSE WHO HAVE COMPLETED IDBI INTERVIEW AT MUMBAI , PL POST UR QUESTIONS , WHICH WILL HELP OTHER CANDIDATES.

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