Sat May 09 2020

Part-1

Banking Awareness 2020- For All Bank Exams
List of Important Banking Terms

Repo Rate
Repo rate is the rate on which RBI provides a loan to the bank for short-term between 1 to 90 days, RBI takes some interest from the commercial banks which is termed as Repo Rate.

Reverse Repo Rate
Reverse Repo rate is the rate on which bank deposit it's excess money in RBI then RBI provides some interest to that bank and this interest is known as Reverse Repo Rate.

SLR –(Statutory Liquidity Ratio)
SLR a certain % of their total deposits in the form of (Gold + Cash + bonds + Securities) which every bank has to maintain with themselves at the end of every business days.

Cash Reserves Ratio
Cash Reserve Ratio is the ratio maintained by every bank which is a certain % of their total deposits with RBI in the form of Cash and Net demand & Time Liabilities.

Bank Rate
Bank Rate is the rate through which RBI charges certain % for providing money to other banks without any security for a Long period of time for 90 Days & Current Bank Rate is 6.75%.

Marginal standing facility
MSF basically refers to the rate through which bank can borrow funds for Short time – Overnight basis.


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