RBI credit policy: What these banking terms mean
- Bank rate is the rate at which RBI lends to commercial banks. This influences the interest rates commercial banks charge their customers. Pegged at 9 per cent currently, a change in the bank rate has a trickle-down effect. A higher bank rate will mean commercial banks will increase lending rates, affecting your installments and the interest rates your deposits fetch.
- The cash reserve ratio stipulates the minimum proportion of deposits that banks must hold with the central bank. When the RBI increases the CRR, banks have fewer funds to lend or invest since they have to park more money with the central bank, helping it control liquidity in an economy. If liquidity decreases, there is less money available, and that helps bring down inflation.
- Statutory liquidity ratio defines the minimum proportion of their deposits that banks have to maintain at the close of business every day as liquid assets, such as cash or gold. A higher SLR restricts a bank's ability to infuse more money into the economy, reining in inflation.
- Repo rate is the rate the central bank charges to lend to banks against securities. If banks have to pay more to borrow money, they may increase the rates they charge their customers or may borrow less, thus reducing inflation.
- Reverse repo rate is the rate at which the RBI borrows money from banks. So if the RBI hikes the reverse repo rate, banks will be happy to keep more funds with the RBI since they get a higher rate of return. Consequently, they will have less money to lend.
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High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
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Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
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Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
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Unhedged Position: Can India See An Indonesia-Style Time Correction?
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Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
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India Exports Capital. Why Not Export Trusteeship?
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France's Economy & Politics Are In Crisis | The Reason Why
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You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
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Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
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FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
