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RBI’s Current Rates: Are You Prepared for the Economic Impact?

RBI's Current Rates

The Reserve Bank of India (RBI) has updated its current policy rates which have been kept steady for now. These rates play a crucial role in determining the overall interest rates and borrowing costs in the country.

RBI’s Current Rates:

Rate TypeRate
Policy Repo Rate6.50%
Standing Deposit Facility Rate6.25%
Marginal Standing Facility Rate6.75%
Bank Rate6.75%
Fixed Reverse Repo Rate3.35%
Base Rate9.10% – 10.25%
MCLR (Overnight)8.00% – 8.60%
Savings Deposit Rate2.70% – 3.00%
Term Deposit Rate6.50% – 7.25%
CRR (Cash Reserve Ratio)4.50%
SLR (Statutory Liquidity Ratio)18.00%

These rates have a significant impact on borrowing costs, lending rates, and overall economic conditions. Stay informed to make better financial decisions. Let’s take a closer look at the key rates set by the RBI:

Policy Rates (Current Rates):

  • Policy Repo Rate: The repo rate, at which the RBI lends money to commercial banks, remains at 6.50%. This rate has a significant impact on the interest rates charged by banks on various loan products.
  • Standing Deposit Facility Rate: The rate at which banks can park their excess funds with the RBI stands at 6.25%. This rate is generally lower than the repo rate and influences short-term interest rates.
  • Marginal Standing Facility Rate: This rate, which allows banks to borrow funds overnight from the RBI, has been maintained at 6.75%.
  • Bank Rate: The bank rate, at which the RBI lends money to commercial banks against eligible securities, remains at 6.75%.
  • Fixed Reverse Repo Rate: The rate at which the RBI borrows funds from commercial banks has been kept unchanged at 3.35%.

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Lending / Deposit Rates (Current Rates):

  • Base Rate: The base rate for lending remains at a range of 9.10% to 10.25%. This rate is the minimum lending rate below which banks cannot lend to borrowers.
  • MCLR (Overnight): The overnight marginal cost of funds-based lending rate ranges from 8.00% to 8.60%.
  • Savings Deposit Rate: The interest rate on savings deposits remains in the range of 2.70% to 3.00%.
  • Term Deposit Rate (more than 1 year): The interest rate on term deposits has been maintained at a range of 6.50% to 7.25%.

Reserve Ratios (Current Rates):

  • CRR (Cash Reserve Ratio): The ratio of cash banks are required to maintain with the RBI stands at 4.50%. This enables the RBI to control the amount of funds banks can lend.
  • SLR (Statutory Liquidity Ratio): The ratio of liquid assets that banks must maintain in the form of cash, gold, or government securities remains at 18.00%.

These rates have been carefully set by the RBI to maintain stability in the economy and control inflation. While the current rates have remained unchanged for now, it is essential for businesses and individuals to keep an eye on them as any changes can have a significant impact on borrowing costs and overall economic conditions.

Source: https://rbi.org.in/home.aspx

Last Updated on 5 months

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