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October 13, 2014

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RBI KEY RATES
  • Repo Rate:- 8%
  • Reverse Repo Rate:- 7%
  • Cash Reserve Ratio (CRR):- 4%
  • Statutory Liquidity Ratio (SLR) :- 22%
  • Bank Rate:- 9%
  • Marginal Standing Facility (MSF):- 9%
Method to control Supply of Money
Bank Rate:- Bank Rate is the rate at which Reserve Bank Of India  allows finance to commercial banks. Bank Rate is a tool, which central bank  uses for short-term purposes. Any upward revision in Bank Rate by Reserve bank is an indication that banks should also increase deposit rates as well as Base Rate / Benchmark Prime Lending Rate.  Thus any revision in the Bank rate indicates that it is likely that interest rates on your deposits are likely to either go up or go down,  and it can also indicate  an increase or decrease in your EMI.

Bank Rate  (For Non Bankers) :- This is the rate at which central bank (RBI)  lends money to other banks or financial institutions.   If the bank rate goes up, long-term interest rates also tend to move up, and vice-versa. Thus, it can said that in case bank rate  is hiked,  in all likelihood banks will hikes their own lending rates to ensure that they continue to make profit.
Remember Bank Rate is not the same thing as Deposit Rates offered by banks for fixed deposits and recurring deposits. If you are a non banker and have landed on this page while looking at Deposit Rates.
The Bank Rate also known as discount Rate , is the rate of interest charged by the RBI for providing funds or loans to the banking systems.


Cash Reserve Ratio (CRR):- Cash Reverse Ratio is a certain percentage of Bank deposits which banks are required to keep with RBI in form of reserve or Balance.
CRR (For Non Bankers):- CRR means Cash Reserve Ratio.  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 Reserve Bank of India (RBI) / currency chests, which is considered as  equivlanet to holding cash with RBI. This minimum ratio (that is the part of the total deposits  to be held as cash) is stipulated by the RBI and is known as the CRR or  Cash Reserve Ratio.  Thus, When a bank’s deposits increase by Rs100, and if the cash reserve ratio is 6%, the banks will have to hold additional Rs 6 with  RBI and Bank will be able to use only Rs 94 for investments and lending / credit purpose. Therefore,  higher the  ratio (i.e. CRR), the lower is the amount that banks will be able to  use for lending and investment. 

Statutory Liquidity Ratio (SLR) :- Every Financial Institution has maintain a certain quantity of liquid assets with themselves at any point of time of their total time and demand liabilities.
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 and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).  RBI is empowered to increase this ratio up to 40%. 
SLR (For Non Bankers)  :- SLR stands for Statutory Liquidity Ratio. This term is used by bankers and indicates  the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities.  Thus, we can say that it is ratio of cash and some other approved securities to liabilities (deposits) It regulates the credit growth in India. 



Repo Rate:- Repo rate is the rate at which the RBI lends shot-term money to the banks against securities. When the repo rate increases borrowing from RBI becomes more expensive.  Therefore, we can say that in case,  RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.
Reverse Repo Rate:- Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the RBI.  The banks use this tool when they feel that they are stuck with excess funds and are not able to invest anywhere for reasonable returns.     An increase in the reverse repo rate  means that the RBI is ready to borrow money from the banks at a higher rate  of interest. As a result, banks would prefer to keep more and more surplus funds with RBI.

Open Market Operation:- An open Market Operation is an instrument of monetary policy which involves buying or selling of government securities from or to the public and Banks.

Foreign Direct Investment (FDI):-A Foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country.
FDI Limits :-
  • Defense Sector:- 49 %
  • Insurance:- 49 %
  • Civil Aviation:- 49 %
  • Private Sector Banks:- 74 % 
  • Single Brand :- 100 %
  • Pension:- 49 %
  • Print Media:- 56 %
  • Public Sector Bank :- 20 %
  • Multiple Brand :- 51 %
  • Tourism:- 100 %
  • Agriculture :- 100 %
  • Airlines/Aviation :- 49 %
  • Special Economic Zones :- 100 %
Census-2011 
This was the 15th Census of India (7th Census after Independence) 

  • Slogan- Our Census, Our Future
  • Present Registrar general and Census Commissioner- C Chandra Mauli
  • India's  First Census- 1872
  • India's 15th Census- 2011
  • Total Population at this Census- 1,21,0193422
  • India's Rank in Population is 2nd (with 17.5 %)  After China (19%).
  • Most Populous State of India- Uttar Pradesh
  • Least Populous State of India- Sikkim
  • Most Literate State- Kerala (93.9 %)
  • Least Literate State- Bihar (63.82 %)
  • National Sex Ratio- Female: Male (940:1000)
  • Highest Sex Ratio (State)- Kerala (1084:1000)
  • Lowest Sex Ratio (State)- Haryana
  • Highest Sex Ratio (Union Territory)-Panducherry
  • Lowest Sex Ratio (Union Territory ) - Damn & Div (61:1000)
  • Literacy of Male -82.14 %
  • Literacy of Female - 74.04 %
  • Population Growth Rate - 17.64 %
  • Highest Fertility rate - Meghalaya
  • Most Literate Union Territory- Lakshadweep (92.2 %)
  • Least Literate Union Territory- Dadra Nagar & Haweli
  • Most Literate District - Serechhip (Mizoram) 
  • Least Literate District - Dadra Nagar & Haweli
  • Highest Density of Population - Bihar (1102 Sq. Km.)
  • Lowest Density of Population - Arunachal Pradesh (17 Km)
  • Total Number of Districts- 640
  • Highest Populous Districts- Thane (Mumbai)
  • 100 % Literacy Districts - Palakkad (Kerala)
  • 100 % Banking State- Kerala
  • Density of Population in India - 382 Sq. km
  • Increase in Population during 2001-2011- 181 million

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