- Looking at the consistently growing inflation, which crossed the 4+/- 2% threshold this quarter at 6.95%, the Reserve Bank of India hiked the key policy rates. The increase is meant to contain inflation in the long term.
|
|
CRR |
Repo |
SDF |
MSF |
|
Earlier |
4.0% |
4.0% |
- |
- |
|
Now |
4.50% |
4.40% |
4.15% |
4.65% |
- Impact on the Indian Economy
- Increased rate of interest thus a dip in demand
- Rise in monthly EMIs
- Debt investments will become more attractive
- Consumer Loans are expensive
Question:
Q.1 What is the current CRR for the scheduled commercial Banks, mandated by the RBI?a. 4%
b. 4.40%
c. 4.54%
d. 4.50%
