Which of the following is/are key policy rates used by RBI to influence interest rates?begin{enumerate}item Bank rate and repo rateitem Reverse repo rateitem CRR and SLRend{enumerate}Select the correct answer using the codes given below

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following is/are key policy rates used by RBI to influence interest rates?

A	Only 1
B	Only 2
C	Only 3
D	All of these

Explanation:

Detailed explanation-1: -The central bank in India i.e. the Reserve Bank of India (RBI) uses repo rate to regulate liquidity in the economy. In banking, repo rate is related to ‘repurchase option’ or ‘repurchase agreement’.

Detailed explanation-2: -The current/ latest rates as per RBI Monetary Policy are: SLR 18.00%, CRR is 4.50%, MSF is 6.75%, Repo Rate is: 6.50%, Reverse Repo Rate is 3.35%, and Bank Rate 6.75%.

Detailed explanation-3: -Ans. Cash Reserve Ratio (CRR) is the percentage of money, which a bank has to keep with RBI in the form of cash. Whereas, Statutory Liquidity Ratio (SLR) is the proportion of liquid assets to time and demand liabilities.

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