The Reserve Bank of India lowered its Repo Rate and Reverse Repo Rate by 50 basis points to 5% and 3.5% respectively, with immediate effect. The Repo Rate is the rate at which RBI lends money to banks and the Reverse Repo Rate is the rate at which banks park funds with RBI.
This move will help RBI to maintain enough money in the economy as it will allow banks to reduce their interest rates on various loans, thereby making credit available easily to the population, at lower interest rates.
The inflation rate, which is already low, would come down further with the rate cut. Meanwhile, the central bank has asked banks to monitor their loans and assets quality as concerns grow over non-performing assets in the banking system.
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10 comments:
Thank you very much for this important information. This is not going to help common people. Banks will not reduce their lending rate instead will reduce their deposit rates. General people will bear more, getting less return in deposit and paying more in loans. RBI should not further reduce the lending rates, as it is in favor of only banks not general people.
hey dude!
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> Non Performing Assets
many banks did reduce home loan rates after that..
> Puneet Parakh
thanks man.. i visited ur blog. great stuff u got there.
Even though The RBI cuts repo & reverse repo rates but i think would not be helpful for public because banks will not reduce their lending rate. I am completely agree with the first comment. Quidco vs TopCashBack
I loved your article.Really looking forward to read more.
good move
Thanks for posting this article.
Increasing or decreasing repo rate or reverse repo rate will affect the loan taking capability of businesses, this Business Acceleration Program will help you understand the market and the banking sector and will help you to take your business to a whole new level.
Please keep posting.
Great tips, many thanks for sharing. I have printed and will stick on the wall! I like this blog. KAYA KAMA HAMMAM & DAY SPA
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