📊 Repo Rate: The repo rate is the rate at which banks borrow rupees from the Reserve Bank of India (RBI) when they face a shortage of funds. It is a crucial tool used by the RBI to control liquidity in the banking system.
📉 Reverse Repo Rate: Conversely, the reverse repo rate is the rate at which the RBI borrows money from banks. This rate is employed by the RBI to absorb excess liquidity in the banking system.
💰 CRR (Cash Reserve Ratio): CRR is the percentage of funds that banks are required to maintain with the RBI, ensuring liquidity and stability in the financial system.
📈 SLR (Statutory Liquidity Ratio): SLR is the minimum percentage of assets that banks must maintain in the form of cash, gold, or government securities before extending credit to customers. It is a tool used by the RBI to regulate credit flow in the economy.
🏦 Bank Rate: The bank rate, also known as the discount rate, is the rate at which the central bank lends money to commercial banks. It influences the overall interest rate structure in the economy.
💹 Inflation: Inflation refers to the general increase in prices of goods and services, leading to a decrease in the purchasing power of a currency. It is a key economic indicator that impacts consumers, businesses, and the overall economy.
📉 Deflation: Deflation is the sustained decrease in the prices of goods and services, resulting in an opposite economic scenario to inflation. It can have various implications on economic growth and consumer behavior.
🏦 PLR (Prime Lending Rate): The PLR is the interest rate at which banks lend to their most creditworthy customers, typically large and stable businesses. It serves as a benchmark for other lending rates.
💵 Deposit Rate: Deposit rate refers to the interest rate paid by financial institutions on cash deposits made by customers. It influences savings behavior and investment decisions.
These financial terms play a crucial role in shaping the monetary policy, financial stability, and economic performance of a country. Understanding these concepts is essential for individuals and businesses to navigate the complex world of finance effectively.
From India, Gurugram
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141📉 Reverse Repo Rate: Conversely, the reverse repo rate is the rate at which the RBI borrows money from banks. This rate is employed by the RBI to absorb excess liquidity in the banking system.
💰 CRR (Cash Reserve Ratio): CRR is the percentage of funds that banks are required to maintain with the RBI, ensuring liquidity and stability in the financial system.
📈 SLR (Statutory Liquidity Ratio): SLR is the minimum percentage of assets that banks must maintain in the form of cash, gold, or government securities before extending credit to customers. It is a tool used by the RBI to regulate credit flow in the economy.
🏦 Bank Rate: The bank rate, also known as the discount rate, is the rate at which the central bank lends money to commercial banks. It influences the overall interest rate structure in the economy.
💹 Inflation: Inflation refers to the general increase in prices of goods and services, leading to a decrease in the purchasing power of a currency. It is a key economic indicator that impacts consumers, businesses, and the overall economy.
📉 Deflation: Deflation is the sustained decrease in the prices of goods and services, resulting in an opposite economic scenario to inflation. It can have various implications on economic growth and consumer behavior.
🏦 PLR (Prime Lending Rate): The PLR is the interest rate at which banks lend to their most creditworthy customers, typically large and stable businesses. It serves as a benchmark for other lending rates.
💵 Deposit Rate: Deposit rate refers to the interest rate paid by financial institutions on cash deposits made by customers. It influences savings behavior and investment decisions.
These financial terms play a crucial role in shaping the monetary policy, financial stability, and economic performance of a country. Understanding these concepts is essential for individuals and businesses to navigate the complex world of finance effectively.
From India, Gurugram
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