The Reserve Bank of India has various tools to control and maintain liquidity in the market. CRR and Repo rates are two of such tools. CRR: Cash Reserve Ratio (CRR) is the ratio of deposits banks must maintain with the Reserve Bank of India. CRR determines bank interest rates It can be explained by the below example. A person deposits Rs 1,000 in his/her bank account The bank uses the money to lend to others To be able to […]
How does the repo rate affect your loans?