Rates 2 Wonder !!

CRR - Cash Reserve Ratio

It is the percentage of amount deducted from the total libality of the bank and which should be kept in the liquid form with the bank(say total liability of bank is 100 and amount for CRR is fixed 5%,than Rs. 5 will be kept in the liquid form ),remainig amount will be Rs.95-/

SLR - Stuatory liquidity Ratio

It is the percentage(fixed by the RBI) of money(left after deduction of CRR) which is invested in the government securities.(say the Percentage fixed for the SLR is 25% than 25%of95 will be invested as the SLR

PLR- Prime Lending Rate

Is the percentage of amount left after deduction of CRR and SLR from the total liability of any bank, and lend to the Sectors at lower rate of interest as compare to another lending.

Repo Rate -Lending rate offered by the RBI to other banks for short term lendin against the private securities.

Reverse Repo Rate - It is the opposite of RR(means rate at which RBI offers the securities to the banks)