Monetary Policy

What is Marginal Standing Facility (MSF)? Meaning, Definition

Marginal Standing Facility (MSF): “Marginal Standing Facility (MSF) refers to the collateralised short term borrowing facility for the scheduled commercial banks and other financial institutions from the Reserve Bank of India (RBI).” In other words, MSF is an instrument for the commercial banks and other financial institutions to avail the short term (overnight or one …

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Statutory Liquidity Ratio (SLR) | Meaning, Definition and Objectives

Statutory Liquidity Ratio (SLR): “The Statutory Liquidity Ratio (SLR) refers to the certain proportion of NDTL (Net Demand and Time Liability) of the commercial banks that has to be maintained with itself in form of liquid assets such as cash, gold or government approved securities by the commercial banks.” The Reserve Bank of India (RBI), …

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Cash Reserve Ratio (CRR) | Meaning, Definition and Objectives

  Cash Reserve Ratio (CRR): “Cash Reserve Ratio (CRR) refers to the certain proportion of Net Demand and Time Liability (NDTL) of the commercial banks which has to be reserved in the form of cash (liquid asset) under the supervision of RBI as per Section 42 of the RBI Act” In other words, RBI has …

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What is Repo Rate? Meaning and definition | Reverse Repo Rate

Table of Content: What is Repo Rate or Repurchase Option Agreement Rate? What is Reverse Repo Rate?  Explained with example. Effect of Repo Rate and Reverse Repo Rate on the rate of Inflation.  How does the Repo Rate and Reverse Repo Rate effect on Growth Rate? What is Repo Rate? The term ‘Repo’ refers to …

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