RBI to introduce new prepaid payment instrument

RBI reduces repo rate for 5th time in a row to boost growth: 04.10.2019

Points to Remember:

  • The RBI cut benchmark interest rates for the fifth time this year to spur growth after the economy expanded by 5% in Q1.
  • The repo rate was reduced by 25 bps to 5.15%, taking the cumulative cuts so far this year to 135 bps.
  • A repo rate cut allows banks to reduce interest rates for consumers and lowers equal monthly instalments on home loans, car loans and personal loans.

Rates at a Glance:

  • Policy Repo Rate: 5.15%
  • Reverse Repo Rate: 4.90%
  • Marginal Standing Facility Rate: 5.40%
  • Bank Rate: 5.40%
  • CRR: 4%
  • SLR: 18.75%
Important Possible questions based on above News:
  1. As per the Fourth Bi-monthly Monetary Policy Statement, 2019-20 by RBI, What is the new Repo Rate? 5.15%
  2. What is the difference in rates(in BPS) between Policy Repo Rate & MSF? 25 Basis points



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