OpenGuide-Bi monthly policies of  RBI are very important to understand the position of our economy.Here are the explanations needed for each tool and its present rates.

Repo Rate-Repo rate is  the rate at which commercial banks lend money from RBI against their government securities.Repo rate is the short form of Repurchase rate.

Repo rate-6.25%(as of May 2017)

Reverse Repo Rate-Reverse Repo Rate is the rate at which RBI lends money from Banks.It is also a tool used by RBI to withdraw excess money from the economy.

Reverse Repo Rate-6%(as of May 2017)

Cash Reserve Ratio-Cash Reserve Ratio is the ratio of deposits which has to be kept in current account with RBI.

CRR-4%(as of May 2017)

Statutory Liquidity Ratio-Every bank is required to maintain a minimum portion of Net Demand and Time Liabilities as liquid assets in the form of cash,gold and un-encumbered approved securities.

SLR-20.5% (as of May 2017)

Marginal Standing Facility-It is the rate at which banks can borrow money overnight from RBI against Government securities.

MSF-6.5%(as of May 2017)

Base Rate-Base Rate is a long term rate at which RBI lends money to Banks or Financial institutions.

Base Rate-9.1%-9.6%(as of May 2017)