Bank rate in India

  • There is no limit/range on the Bank Rate
  • Bank rate in India is determined by Reserve Bank of India (RBI)
  • It is the rate at which RBI gives loan to commercial banks without keeping any collateral
  • The RBI also provides short term loans to its clients (keeping collateral) which is called the repo rate
  • RBI revises this rate periodically
  • However, there is no predetermined schedule
  • This is typically done on a quarterly basis to control inflation and to stabilize the countryu2019s exchange rates
  • A fluctuation in bank rates triggers a ripple-effect as it impacts every sphere of a countryu2019s economy
  • For instance, the prices in stock markets tend to react to interest rate changes
  • A change in bank rates affects customers as it influences prime interest rates for personal loan

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Free
Module E PPB ePDFs available in our android app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Free
Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Free
Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app
Learning Sessionshttps://iibf.info
Btech, JAIIB CAIIB and a tutor. Have taken more than 900+ hours online classes with more than 1,25,000 students

Popular

Free Live Classes

spot_img

More from author

Principles and Practices of Banking – PPB Most important Questions

Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles...

JAIIB Exam Legal and Regulatory aspects of Banking Important Questions in Hindi

https://www.youtube.com/watch?v=6WUXxLvcKm8 Legal and regulatory aspects of Banking previous year questions for JAIIB exam are covered in this video. These questions are very important for legal...

Accounting and Finance Exam in One Attempt

Jaiib exam dates have already been announced by the IIBF. This is high time for preparing JAIIB. If you have also applied for JAIIB...

What next after CAIIB? IIBF Certifications at a Glance

What next after CAIIB? 15 Certificate Exams in Finance and Banking useful for Bankers:: Introduction As per the IBA settlement, bankers who have passed JAIIB and CAIIB...