CPT

Current rate of Bank rate policy

CRR                           :  5.00%

SLR                            :  24.0%

hi suheel

nitish is asking about what is the current rate of bank rate policy, CRR, SLR ?

not the % of CRR AND SLR

CRR (Cash Reserve Ratio) means the minimum percentage of a Bank's total deposits required to be kept with the central Bank.

 e.g. If the minimum  reserve ratio is 10% and total deposits of a certain bank is Rs. 100 crore, it will have to keep Rs. 10 crore with the central Bank.If the minimum reserve ratio is raised to 20% the bank will have to keep Rs. 20 crore with the central bank.

SLR (Statutory Liquidity Ratio) means, every bank is required to maintain a fixed percentage of its assets in the form of cash or other liquid assets.

 It is the amount which a bank has to maintain in the form:

1. Cash
2. Gold valued at a price not exceeding the current market price,
3. Unencumbered approved securities (Government securities or Gilts come under this) valued at a price as specified by the RBI from time to time.

The objectives of SLR are:

1. To restrict the expansion of bank credit.
2. To augment the investment of the banks in Government securities.
3. To ensure solvency of banks. A reduction of SLR rates looks eminent to support the credit growth in India.

The cash reserve ratio is also known as the cash asset ratio or liquidity ratio.

sorry, i was not read question correctly.

thanks, for findout my mistake

ok