Reserve Bank of India (RBI) cuts Repo rate by 25 basis points

RBI cuts Repo rate by 25 basis points June 2015.Reserve bank of India has currently changed its policy rates which will be effected from June 2, 2015 in some of the cases. Candidates who have been preparing for the banking and other insurance based examination should note the details of the RBI new rates and these are likely to be asked in the upcoming examination. Reserve bank of India changes its policy rates generally bimonthly but it can change the rates at any time depending on the current economic scenario of the country. The Reserve bank of India is the central bank of India and decides the various rates like repo rate, reverse repo rate, CRR, SLR etc which directly affects the economy of the country and the banking system in the country. All the banks whether, private, commercial, public sector and cooperative banks will have to follow the policy guidelines of the RBI which is mandatory for them.

         RBI has currently changed its poly rates and the Repo rate has been lowered by 25 basis points. A low repo rate tells that the lending from RBI for the banks become easier and there will be more liquidity in the market. Repo is very important factor in determining the inflation of the country. Currently is inflation in the country is average but due to the change in the base year for the calculating the growth, the verbal growth rate of the country has been increased.

Current RBI Policy rates details 2015

1 Bank Rate - 8.25 % – will be effected from 2nd June 2015

2 Repo Rate - 7.25 % – will be effected from  2nd June 2015

3 Reverse Repo Rate  -  6.25% – will be effected from 2nd June 2015

4 Cash Reserve Ratio (CRR) - 4.00% – is effected from 9 th February 2013

5 Statutory Liquidity Ratio (SLR) - 21.50% – from 3rd February 2015

6 Marginal Standing Facility (MSF) - 8.25% – will be effected from 2nd June 2015

To know more details about the terms of the policy rates candidates can visit he official website of the Reserve bank of India and check out the details from themselves. These rates are very important from the perspective of the upcoming examination. Candidates should keep them updates through the policy rates daily.