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CPT

NITISH (Employee & Student) (242 Points)

04 June 2009

Can anyone tell me that what is the current rate of bank rate policy, CRR, SLR ?

I am appearing for ca cpt on june 2009 . Plz help?

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8 Replies

Suheel Ahmed (STUDENT) (49 Points)
Replied 04 June 2009

Current rate of Bank rate policy

CRR : 5.00%

SLR : 24.0%

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Mohan Verma (Assistant Manager - Finance & Accounts) (4328 Points)
Replied 04 June 2009

hi suheel

nitish is asking about what is the current rate of bank rate policy, CRR, SLR ?

not the % of CRR AND SLR

Mohan Verma (Assistant Manager - Finance & Accounts) (4328 Points)
Replied 04 June 2009

CRR (Cash Reserve Ratio) means the minimum percentage of a Bank's total deposits required to be kept with the central Bank.

e.g. If the minimum reserve ratio is 10% and total deposits of a certain bank is Rs. 100 crore, it will have to keep Rs. 10 crore with the central Bank.If the minimum reserve ratio is raised to 20% the bank will have to keep Rs. 20 crore with the central bank.

Mohan Verma (Assistant Manager - Finance & Accounts) (4328 Points)
Replied 04 June 2009

SLR (Statutory Liquidity Ratio) means, every bank is required to maintain a fixed percentage of its assets in the form of cash or other liquid assets.

It is the amount which a bank has to maintain in the form:

Cash
Gold valued at a price not exceeding the current market price,
Unencumbered approved securities (Government securities or Gilts come under this) valued at a price as specified by the RBI from time to time.

Mohan Verma (Assistant Manager - Finance & Accounts) (4328 Points)
Replied 04 June 2009

The objectives of SLR are:

To restrict the expansion of bank credit.
To augment the investment of the banks in Government securities.
To ensure solvency of banks. A reduction of SLR rates looks eminent to support the credit growth in India.