What is Repo Rate?
The rate at which banks borrow money from the RBI to meet their day to day obligations. If the repo rate is low, then banks can charge lower rates on the loans taken by us.
What is Reverse Repo Rate?
It is the rate of interest offered by RBI when banks deposit their surplus funds with the RBI. Banks earn interest on such funds.
What is CRR?
The percentage of cash required to be kept in reserves, vis-a-vis a bank's total deposits. Low CRR means more funds with banks for giving as loans.
The rate at which banks borrow money from the RBI to meet their day to day obligations. If the repo rate is low, then banks can charge lower rates on the loans taken by us.
What is Reverse Repo Rate?
It is the rate of interest offered by RBI when banks deposit their surplus funds with the RBI. Banks earn interest on such funds.
What is CRR?
The percentage of cash required to be kept in reserves, vis-a-vis a bank's total deposits. Low CRR means more funds with banks for giving as loans.
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