Incremental Cash Reserve Ratio (I-CRR) 

I-CRR, ICRR, Incremental Cash Reserve Ratio, CRR, inflation, SCB, Scheduled Commercial Banks, Reserve Ratio, Net Demand and Time liabilities, NDTL, RBI, SLR, Repo rate
Incremental Cash Reserve Ratio (I-CRR) is a temporary measure announced by the Reserve Bank of India (RBI) to absorb surplus liquidity from the Indian banking system. This reserve is in addition to the Cash Reserve Ratio (CRR)
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Cash Reserve Ratio (CRR)

CRR, Cash reserve ratio, DTL, Net Demand and term Liability, RBI Act, penalty, SLR
Cash Reserve Ratio (CRR) is the amount of funds that all Scheduled Commercial Banks (SCB) must maintain with RBI. Regional Rural Banks (RRB) are exempted from maintaining Cash Reserve Ratio. CRR does not carry any floor (minimum)
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Open Market Operation (OMO) by Regulator

Open Market Operation, OMO, quantitative credit control, qualitative, liquidity, government security, monetary policy, regulator, RBI, inflation, deflation, contractionary monetary, expansionary monetary policy, quantitative easing, QE, Quantitative tightening, soft policy, hard policy.
Open Market Operation (OMO) means the purchase or sale of government securities by the central bank of a country from / to the banks on its own account. The purpose of open market operation is ensuring sufficient
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MCLR -Marginal Cost of Funds Based Lending Rate 

MCLR, Marginal Cost of Funds Based Lending Rate System. Credit interest rate, BR, Base Rate, External Benchmark, performance, conditions, CRR, sunset clause, BPLR, new loans, tenor
MCLR, Marginal Cost of Funds Based Lending Rate System interest regime came into effect on April 1, 2016. This was a refined version of Base Rate system announced by RBI to further enhance the transparency of credit
31 Mar 19 Author CategoryBanking Terms Banking Terms - Loans Quick Reference Regulators & Institutions No Comment Read More

Lending Rates- PLR, BPLR and BR- An Overview

Lending rate, PLR,BPLR, BR, MCLR, External Benchmark, interest rate, credit, Prime Lending Rate, Benchmark PLR, Base Rate, SLR,CRR, Financial Sector reforms, Narasimham committee
The interest rate on lending was de-regulated by RBI in October 1994. This was as part of the financial sector reforms initiated in India in 1991. Since 1994, RBI has introduced various benchmarks and guidelines with regard
31 Mar 19 Author CategoryBank Loans- General Banking Terms Banking Terms - Loans Quick Reference Regulators & Institutions One Comment Read More

External Benchmarking of Interest Rates

External benchmark, interest rate, bank loan, MCLR, Retail loans, SME loans, interest transmission, monetary policy, RBI, internally derived rate, base rate, repo rate, . Prime Lending Rate , PLR, Benchmark Prime Lending Rate, BPLR, treasury bill, yield, Financial Benchmarks India Pvt Ltd, FBIL, bargaining power,
Fixing interest rate in relation to an external benchmark was proposed by RBI while announcing the monetary policy review held on December 5, 2018. Banks were suggested to adopt this method for new floating rate loans extended
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Quantitative and Qualitative Credit Control methods

RBI implements monetary policy through two types of credit control techniques; quantitative or general credit control and qualitative or selective credit control.
Monetary policy aims to achieve accelerated growth with price stability. Implementation of monetary policy is one of the major roles of central banks.  The central banks world over achieve these objectives through two types of credit controls
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Bank Rate (BR) or Discount Rate and Inflation

BR, Bank Rate, Discount Rate, Credit, inflation, RBI, commercial bank, BR Act, CRR, SLR, Cash Reserve Ratio, Statutory Liquidity Ratio, Dear Money Policy’, Tight Monetary Policy, Cheap Monetary Policy’, Cheap Money policy, market rate
Bank rate (BR) is one of the most effective weapons employed by almost all central banks to control credit in the financial system. There is a direct relation between Bank Rate and Market Rate. It is widely
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Roles and responsibilities of RBI

RBI, roles, monetary policy, inflation targeting, minimum reserve maintenance, note issuer, banker’s banker, lender of last resort, bank to government, inflation, deflation, responsibilities, custodian of cash, clearing house, currency chest,
Reserve Bank of India (RBI) is constituted as the apex institution of Indian monetary system and financial system.  RBI  is responsible for implementation of monetary policy to control and ensure stability of the monetary and banking system.
28 Nov 18 Author CategoryBanking Awareness Regulators & Institutions No Comment Read More

Statutory Liquidity Ratio (SLR)

SLR, Statutory Liquidity ratio, MSF, Marginal Standing Facility, penalty, DTL, NDTL, SLR securities
Statutory Liquidity Ratio (SLR) is the percentage of the Net Demand and Time Liabilities, a Scheduled Commercial bank (SCB) is required to maintain in liquid assets. RBI is empowered to stipulate SLR up to 40%. SLR is
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