Terms & Concepts

Our economics textbook has always included terms and concepts related to banking, finance, and insurance. However, they are difficult to recall and apply. We all know that repo rates, bank rates, and a variety of other rates play a role in monetary policy. This can lead to a misunderstanding of the concepts. In India, the repo rate is the interest rate at which the Reserve Bank of India lends money to commercial banks that are in need of funds. The rate at which the Reserve Bank of India borrows money from commercial banks is known as the reverse repo rate. Before lending money to consumers, Indian banks must have a certain amount of cash, gold, and other assets on hand. The Statutory Liquidity Ratio is what it's called. In India, all banks are required to comply with certain regulations.