Bank Rate : 9.00%
- Bank rate is the rate at which RBI lends long term loans to commercial banks.
Repo Rate : 8.00%
- Repo rate is the rate at which RBI provides short term loans to commercial banks.
- In April 2012, repo rate was reduced to 8.00% from 8.50%
Reverse Repo Rate : 7.00%
- Reverse Repo Rate is the rate of interest RBI provides to the commercial banks for keeping their excess fund with RBI.
- In April 2012, reverse repo rate was reduced to 7.00% from 7.50%.
Cash Reserve Ratio : 4.25%
- It is the amount the commercial banks must keep as reserve with RBI.
- In March 2012 CRR was reduced to 4.75% from 5.50%
- In September 2012 CRR was reduced to 4.50% from 4.75%
- In October 2012 CRR was reduced to 4.25% from 4.50%
Statutory Liquidity Ratio : 23%
- SLR - It is the amount banks are required m to maintain as liquid assets in the form of gold, cash and approved securities.
- SLR was reduced to 23 % from 24% in July 2012.
Prime Lending Rate (PLR)
- Prime Lending Rate is the interest rate charged by banks to their most secure, trustworthy customers on short term Loans.PLR is also known as Benchmark
Prime Lending Rate (BPLR).
- RBI replaced PLR with Base Rate with effect from 1 April 2011.PLR is only applicable to loans existed before this date.For all new loans applicable interest rate is base rate
SBI Base Rate : 9.75 %
- Base rate – The rate of interest used by commercial banks as a basis for their lending rates.Banks have the right to fix their Base Rate but they cannot lend below Base Rate.
Marginal Standing Facility: 9.00%
- Marginal Standing Facility (MSF) is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12). It came into effect from 9th May 2011.MSF scheme is provided by RBI where the banks can borrow overnight upto 1 per cent of their net demand and time liabilities (NDTL)
What is m-money transfer?
- It also called mobile money transfer, which nothing but just another method of sending money using electronic medium like mobile or computer.
- In this user who intends to avail the service would get a secret code through SMS soon after the money is transferred.Asimilar message would be forwarded to the recipient who could then visit the nearest service-enabled post office and receive the money by submittind the code.
What is Mobile Wallet?
- Mobile wallet which is also abbreviated as M-Wallet, is a an electronic account that is linked to a person’s mobile phone in which money can be electronically deposited and the same can be used as cash.
- Utility: Internationally, M–Wallets are used to pay for goods at stores, pay for public transportation, make donations and pay bills
What is Trade Finance Programme (TFP)?
- TFP is a programme under Asian Development Bank with an objective to fill the market gaps for trade finance by providing guarantees and loans to banks to support trade. ADB collaborates with 200 partners to provide companies with the financial support they require to carry on import and export operations in Asia’s most challenging markets.
What is PAN ?
- Permanent Account Number
What is Eurozone crisis ?
- Acute financial crisis faced by some of the countries in European Union. They include Greece, Portugal , Spain and Italy. They find it tough to repay this debt and are on the verge of default.
What is plastic money ?
- Credit cards are popularly known as plastic money.
What is liquidity ?
- Easy convertibility into cash.
What is hot money ?
- Money which has the tendency to migrate towards more profit oriented place.
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