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Banking 5 Reverse Repo Rate
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Reverse Repo Rate

Israel Jebasingh
Director of Officers IAS Academy. IAS Officer of 2004 Batch with AIR 59.

U
Unacademy user
Pg
thanks mam...very well explained
thank you sir for the valuable basic class
Sir you have mind blowing teaching technique..... Sir , one concept i want to understand from you... it is your Name......asking you with due respect... sir.........
My cue is Inflation occurs when goods are scarce in the market whether due to bad monsoon or price rise in petrol or anything else. RBI then increase CRR, SLR, RR, RRR to suck out money from the economy so that people don't have money to buy them or be judicious while buying anything. RBI continues to do so till the scarcity of goods in the market gets over. Thus RBI buys time by doing so. And when it becomes normal then RBI normalizes CRR, SLR, RR, RRR. Sir am I thinking right or not?
Israel Jebasingh
2 years ago
No when inflation is due to demand side when there is too much money supply RBI will increase Interest rates
Akash Kumar
2 years ago
Thank you for the reply sir. But I am unable to understand sir. I lack the basic knowledge about inflation. How inflation can be curbed by reducing the money flow in the economy, I am unable to understand this. Sir please explain this.
Israel Jebasingh
2 years ago
Think everyday 1000 kgs apple come to your local market and everyday 500 people buy at a price of Rs 100/kg. Suddenly your entire village gets more money say due to pay commission or salary hike in private sector. Now more money on your hands but same 1000kgs come to market. So many more people will demand for Apple as lot of money supply. So 100/kg may become 150/kg.
Akash Kumar
2 years ago
Thank you very much for your last reply sir. Now i get it completely.
Suvendu Pal
a year ago
Even I don't understand what is inflation but now I completely understand this..thank you so much sir..one request sir pls upload the another topics related about bank
amazing course Sir....was able to understand these concepts thoroughly probably the first time......so thanks...regards
thank u sir. i need clarification on inflation whether it is rise in price or fall in price in the context of crr,slr increased
  1. Banking 5 Reverse REPO Rate


  2. Introduction . R A Israel Jebasingh 2004 Batch IAS Director, Officers IAS Academy


  3. Reverse REPO Rate




  4. 79


  5. Reverse Repo Rate .Started in 1996 Rate of Interest the RBl pays to its clients


  6. RBI I RRR 12.


  7. RolDo House ( LOAN L14


  8. RECESS (toN


  9. Banks park their surplus fund with RBI Tool by which surplus money is drained out Increase of Reverse Repo Rate will suck out the excess money from the market because banks will prefer to deposit in RBI rather than giving as loans