Repo, Reverse Repo, Bank rate, Call rate, CRR & SLR- Definitions for Banking Exams

Repo, Reverse Repo, Bank rate, Call rate, CRR & SLR definitions for Banking Exams

Useful for Bank PO| Bank Clerk | Other Banking and Competitive Exams

Quiz on Latest RBI Policy Rates for Exams

Repo (Repurchase) Rate

Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand they are facing for money (loans) and how much they have on hand to lend.

If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.

Reverse Repo Rate

This is the exact opposite of repo rate.

The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed the reverse repo rate. The RBI uses this tool when it feels there is too much money floating in the banking system.

If the reverse repo rate is increased, it means the RBI will borrow money from the bank and offer them a lucrative rate of interest. As a result, banks would prefer to keep their money with the RBI (which is absolutely risk free) instead of lending it out (this option comes with a certain amount of risk)

Consequently, banks would have lesser funds to lend to their customers. This helps stem the flow of excess money into the economy

Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks, while repo signifies the rate at which liquidity is injected.

Bank Rate

This is the rate at which RBI lends money to other banks (or financial institutions)

The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa.

Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate, the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit. This is currently 6 per cent.

Call Rate

Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement. Si nce banks need funds on a daily basis, they lend to and borrow from other banks according to their daily or short-term requirements on a regular basis.

Cash Reserve Ratio (CRR)

Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation by tying their hands in lending money

Statutory Liquidity Ratio (SLR)

Besides the CRR, banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements. What SLR does is again restrict the bank’s leverage in pumping more money into the economy.
Also check Latest Repo, Reverse Repo, Bank Rate, CRR, SLR, MSF Rates for Exams

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Govt launches austerity measures; no creation of new jobs or filling of posts lying vacant for over one year.

Govt launches austerity measures; no creation of new jobs or filling of posts lying vacant for over one year.

Central government on 18 September 2013 (Wednesday) unveiled austerity measures, putting a freeze on fresh appointments, banning holding of its conferences in 5-star hotels and barring officials from executive class air travel, in a bid to check fiscal deficit from going out of control.

Battling slow economic growth and not too robust tax collections yet, the government came out with a slew of measures that will ensure that Ministries and departments will not buy new vehicles, create new jobs or fill posts lying vacant for over one year.

The Finance Ministry on Wednesday issued a circular containing the steps, which will cut non-Plan expenditure by 10 per cent, a day after Finance Minister P. Chidambaram met Financial Advisors of various Ministries to impress upon them the need for austerity and to contain expenditure within the budget target.

The measures aim at restricting the fiscal deficit to the budgeted figure of 4.8 per cent of the GDP in 2013-14.

The Ministry has directed that the size of delegations going abroad should be kept at “absolute minimum.”

“Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government. In the context of the current fiscal situation, there is a need to continue to rationalise expenditure and optimise available resources,” the Ministry said. Mr. Chidambaram had earlier said that he had drawn a red line and would not allow the fiscal deficit to breach the target of 4.8 per cent of the GDP in 2013—14. The various austerity measures helped the government to contain the fiscal deficit at 4.9 per cent of the GDP in the previous financial year, against the budgeted target of 5.1 per cent.

Referring to jobs in government departments, it said there will be a total ban on new posts and those that have remained vacant for more than a year will not be filled except under very rare and unavoidable circumstances.

Click here to view official order

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10% DA hike for Central government employees w.e.f 01 July 2013

10% DA hike for Central government employees w.e.f 01 July 2013

Union Cabinet on 20 September 2013 (Friday) approved a double-digit increase of 10% in dearness allowance from existing 80% to 90 per cent, benefiting 50 lakh Central government employees and 30 lakh pensioners, with effect from July 1, 2013.

Significantly, the double-digit increase in DA has come after a gap of about three years. Since the government uses CPI-IW (Consumer Price Inflation – Industrial Workers) data for the previous 12 months to arrive at a figure for computation of any increase in DA instalment, the percentage hike is based on the retail inflation data for July 2012-June 2013. The previous DA hike of 10 per cent was in September 2010 when the government announced an additional instalment given with effect from July 1 that year.

In April this year, the government announced DA increase from 72 to 80 per cent with effect from January 1, 2013.

Official Release on PIB read as follows:

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.7.2013

The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.

Hence, the Central Government employees as well as the pensioners are entitled for DA/DR at the rate of 90 per cent of the basic with effect from 01.07.2013. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs. 10879.60 crore per annum and Rs. 7253.10 crore in the financial year 2013-14 ( i.e. for a period of 8 month from July, 2013 to February 2014).

Official order from finmin is expected soon and the same will be posted in this blog immediately on release by finmin. Keep Visiting!!!

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Exam Dates of SSC Combined Higher Secondary Exam 2013 Pre-poned

Exam Dates of SSC Combined Higher Secondary Exam 2013 Pre-poned

Staff Selection Commission revised the dates for Combined Higher Secondary Exam 2013. Earlier the exam was scheduled to be held on 10 November 2013 and 24 November 2013. Now, the commission has pre-poned the dates to 20 October 2013, 27 October 2013, and 10 November 2013. The admit card for the same will be issued in due course of time.

Click here to view CORRIGENDUM

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Recruitment of Probationary Officers in Bharatiya Mahila Bank

Recruitment of Probationary Officers in Bharatiya Mahila Bank

Bharatiya Mahila Bank, the first women's public sector bank headquartered in Delhi is gearing up to be operational by November 2013. The key objective of the Bharatiya Mahila Bank is to focus on the banking needs of women and promote economic empowerment. The Bank is looking for intelligent, motivated and passionate workforce committed to delivering business goals and assisting the organization in formulation, adoption and redefining of business strategies and goals from time to time.

They have invited application from eligible female candidates who have qualified in the Common Written Examination for POs/MTs conducted by IBPS in the year 2012. A total of 115 Posts are available. Details are as follows:

Name of the Post: Probationary Officers in JMGS-I

No. of Posts: 115

Important Dates:

Date of Commencement of Application: 19/09/2013

Date of Closure : 30/09/2013

Start Date for Fee deposit: 19/09/2013

Last Date for Fee deposit: 30/09/2013

Last Date for Reprint: 15/10/2013

Click Here for detailed notification (Under Whats New Option)

Click Here to apply online

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Current Affairs- September 2013 2nd Week (PDF Download)

Latest Current Affairs- September 2^nd Week

Latest Current Affairs| GK | Latest Exams| Job Alerts| Exam Results & many more

http://www.currentaffairs4examz.com

Prepared by: http://www.currentaffairs4examz.com

September 2013 Current Affairs Questions and Answers for preparing Exams| SSC | UPSC | Civil Services | Bank | RRB| LD Clerk and all other Competitive Examinations.

Latest Current Affairs from Second Week of September 2013 in PDF- useful for all competitive Examinations!!!!!

Download as PDF

Q1. Name India’s most deterrent nuclear capable ballistic missile which wa successfully test fired from Chandipur Test Range in Balasore district off Odisha coast on 15 September 2013?

Ans. Agni-5

NotAgni-5 can carry a single nuclear warhead of over 1000 kg and can strike with precision targets in China and Europe. The complex missile weighs about 50 tons and is 17.5 meters long.

Q2. Name the cricketers who were handed life ban for IPL spot-fixing by BCCI  on 13 September 2013?

Ans.  S Sreesanth and Ankeet Chavan

Q3. Name the American Engineer and the pioneer of noise reduction in audio recordings who died on 12 September 2013?

Ans. Ray Dolby

Note: He was also the founder of Dolby Laboratories. The 80 year aged Ray Dolby in his end days suffered from Alzheimer disease. 

Q4. Who was conferred with the Indira Gandhi Prize for Peace, Disarmament and Development  2012 by the President of India, Pranab Mukherjee at a function orgainsed in Rashtrapati Bhavan on 12 September 2013?

Ans. Ellen Johnson Sirleaf

Note: She is the president of Liberia. She also won the 2011 Nobel Peace Prize for securing peace in Liberia and promoting economic and social development, and to strengthening the position of women.

Q5. Who was appointed as the President and CEO of the iGate Corporation on 11 September 2013?

Ans. Ashok Vemuri

Note: iGate Corporation is a software services company headquartered in Fremont, California.

Q6. Which team won the South Asian Football Federations (SAFF) Championship 2013 on 11 September 2013 by defeating India?

Ans. Afghanistan

Note: They beat India with a margin of 2-0

Q7. Name the book of Jhumpa Lahiri which was shortlisted among the six books for the Man Booker Prize 2013? Visitàhttp://www.currentaffairs4examz.com

Ans. The Lowland

Note: The Man Booker Prize promotes the finest in fiction by rewarding the very best book of the year. The prize, was launched in 1969, aims to promote the finest in fiction by rewarding the best novel of the year written by a citizen of the United Kingdom, the Commonwealth or the Republic of Ireland.

Q8. Who was elected as the ninth President of the International Olympic Committee (IOC) on 10 September 2013?

Ans. Thomas Bach of Germany

Note: He is the successor of Jacques Rogge of Belgium, who headed the IOC, since 2001 to 10 September 2013.

Q9. Name the vent which voted back for 2020 and 2024 Olympics Games by International Olympic Committee (IOC) on 8 September 2013?

Ans. Wrestling

Q10. Who became the youngest person to fly a single engine aircraft, solo around the globe on 7 September 2013?

Ans. Ryan Campbell (19) of Australia

Q11. Who won the Women’s Single title at US Open 2013?

Ans. Serena Williams

Note: Serena defeated the second seeded, Azarenka with 7-5, 6-7 (6), 6-1 points.

Q12. Which  country have recorded a landmark Test victory by beating Pakistan by 24 runs, which is first time after their victory over India in 2001 - and only their 11th success since their admission to Test cricket in 1992?

Ans. Zimbabwe

Q13. Who was named by BJP as its prime ministerial candidate for the 2014 Lok Sabha election? Visitàhttp://www.currentaffairs4examz.com

Ans. Narendra Modi

Q14. Who won the 2013 US Open Grandslam in men's category?

Ans. Rafael Nadal

Note:  He claimed his second US Open title and 13th Grand Slam crown overall defeating world number one Novak Djokovic, 6-2, 3-6, 6-4, 6-1 in US Open men's singles final 2013.

Q15. Name the first Urdu Law Dictionary in the country released on 15 September 2013 in Mumbai?

Ans. Kanoon Lugat

Note: Supreme Court advocate Muhammad Irshad Hanif authored the translation of this dictionary. The Urdu legal dictionary has a foreword written by former Chief Justice of India Altamas Kabir.

Q16. Indian duo of N. Sriram Balaji and Ranjeet Virali-Murugesan won the ITF Men's Doubles on 15 September 2013. Where was the event held?

Ans. Sharam-Al-Sheikh, Egypt

Q17. Union Government on 15 September 2013 slashed the import tariff value of gold to ...... dollars per 10 grams and silver to ........ dollars per kilogram?

Ans. 432 & 736 respectively

Q18. Name the President of the Republic of Liberia paid an official visit to India since 9 September 2013 to 13 September 2013 at the invitation of the President of India?

Ans. Ellen Johnson Sirleaf

Q19. Name  the Indian woman from south Dinajpur in West Bengal who was declared the world's tallest woman by Guinness World Records recently?

Ans. Siddiqa Parveen

Note: She was measured to be at least 7 feet 3.5 inches. India already holds the record for being home to the world's shortest woman. Standing at 24.7 inches, Jyoti Amge has held the Guinness world record title for Shortest Living Woman since her 18th birthday on 16 December 2011.

Q20. Who was on 14 September 2013 elected as Syria's interim Prime Minister by opposition National Coalition?

Ans. Ahmad Toameh

Q21. Name the World's Oldest Man who died at the age of 112 on 13 September 2013?

Ans. Salustiano Sanchez-Blazquez

Q22. Name the court which pronounced the maximum sentence of death penalty to the four convicts of the 16 December 2012 Delhi gangrape case on 13 September 2013 ? Visitàhttp://www.currentaffairs4examz.com

Ans. District Court of Saket, Delhi

Q23. IRCTC, a Public Sector undertaking of the Ministry of Railways on 12 September 2013 launched the new application for Windows Phone and Windows 8 devices so as to facilitate the users with a new channel of booking e-tickets in addition to the existing portal. Expand IRCTC?

Ans. Indian Railway Catering & Tourism Corporation Ltd.

Q24. Name the spacecraft which on 12 September 2013 officially became the first human-made object to venture into interstellar space?

Ans. NASA's Voyager 1

Note: 36-year-old probe is about 12 billion miles (19 billion kilometers) from our sun. Launched in 1977, Voyager was sent initially to study the outer planets, but then just kept on going.

Q25. Name the Indian who was elected as the Regional Director for WHO South-East Asia Region recently?

Ans. Dr Poonam Khetrapal Singh

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Q26. Union Cabinet of India on 12 September 2013 approved the decision for realisation of Second Vehicle Assembly Building at Satish Dhawan Space Centre, Sriharikota (SDSC-SHAR) at an estimated cost of 363.95 crore Rupees. In which state Sriharikota is located?

Ans. Andhra Pradesh

Q27. Reserve Bank of India on 12 September 2013 constituted an expert committee for examining its Current Monetary Policy Framework. Who will be the chairman of the committee? Visitàhttp://www.currentaffairs4examz.com

Ans. Dr. Urjit Patel

Note: He is the Deputy Governor of Reserve Bank of India.

Q28. Ministry of Youth Affairs and Sports on 11 September 2013 decided to form a Steering Committee to monitor and coordinate the work related to major international sports events till the Tokyo Olympics in 2020. What is the composition of the committee?

Ans. Ten-member panel will be headed by Secretary (Sports) and Executive Director (Teams) and Sports Authority of India will be its Convener.

Q29. Name the Indo American who was nominated as the Assistant Secretary of State for Political-Military Affairs by the US President Barack Obama on 11 September 2013?

Ans. Puneet Talwar

Q30. Where was the South Asian Football Federations (SAFF) Championship 2013 held??

Ans.  Kathmandu, Nepal.

Q31. Who was elected as the new President of Automotive Component Manufacturers Association?

Ans. Harish Lakshman

Q32. Vice President of India M. Hamid Ansari presented the First Sree Narayan Guru Global Secular & Peace Award 2013 on 10 September 2013. Who was the receipient?

Ans. Dr. Shashi Tharoor

Note: He is the Minister of State for Human Resources Development, Government of India

Q33. Name the Prime Minister of Bhutan who visited India Since August 30 August 2013 to 4 September 2013? Visitàhttp://www.currentaffairs4examz.com

Ans. His Excellency Lyonchhen Tshering Tobgay

Q34. Ministry of Environment and Forest on 9 September 2013 declared India's first marine eco-sensitive zone. Where it was around?

Ans. Marine National Park in Gulf of Kutch, Gujarat.

Q35. Minister for Information & Broadcasting Manish Tewari on 9 September 2013 launched the online portal for which national Campaign?

Ans. Bharat Nirman Campaign

Q36. Scientists discovered the single largest volcano in the world, a dead colossus deep beneath which ocean?

Ans. Pacific Ocean

Q37. Manomohan Singh, the Prime Minister of India on 9 September 2013 released a Postage Stamp in the memory Lala Jagat Narayan. Who was he?

Ans. Freedom fighter and former Member of Parliament

Q38. Which party won the 44th Parliamentary elections in Australia on 8 September 2013?

Ans. Australian Liberal Party

Q39. Who will be sworn in as the next Prime Minister of Australia?

Ans. Tony Abbott

Note: He is the leader of the Liberal-National Coalition.

Q40. Who was reelected as the Prime Minister of Cambodia recently?

Ans. Hun Sen

Q41. Engineer's day was celebrated across the country on 15 September 2013. Why was it celebrated on that day? Visitàhttp://www.currentaffairs4examz.com

Ans. Day is celebrated in the honor of "Sir Dr. Mokshagundam Visvesvaraya" who was born on the same day in 1860.

Q42. Who has been appointed as new Chairman and Managing Director of  Power Finance Corporation Limited (PFC) recently?

Ans. MK Goel

Q43. Name the cheaper rocket launched by Japan recently, which they hope it will be a cheaper and more efficient way of sending satellites into space?

Ans. Epsilon

Prepared by: http://www.currentaffairs4examz.com/

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RBI Assistant 2013: Interview Experience

RBI Assistant 2013: Interview Experience

Friends... RBI Assistant Interview is going on. Here is the Interview Experience shared by our friend Satish Kumar Pradhan.

Name -Satish Kumar Pradhan

Interview date -13-09-2013

Post -RBI Assistant

Place -RBI Regional office Bhubaneswar

There were 4 people in the interview (One lady and 3 Gentlemen)

Document verification was started at 9:00 A.M.

I was the 1st per person to face interview (challenge) on that day, So it started on 10.10a.m.

1.What is the difference between public and nationalized sector bank ?

1st question is i.m.p. maximum emphasis is on this question also time taking.

be very brave & cleverly answer it ,because this person is regional hr.manager. He will always trying to decieve you by asking more and more depth question...

2. Which sector you will choose (private/public) why ,which bank you have an account,why do not have a private bank account ?

3. Why Banking?

4. How currency is delivered to market by RBI ?

5.What is the fuction of Rbi ?

6. Question on your Native Place (the city which you belong compulsory)

7. What are the qualitative credit control of RBI ?

8. How credit and debit/credit card fraudulent is made ?

9. Black money,

10. 3 questions on ur subject.

Any further doubt for RBI interview you can contact him in his Facebook Profile: Click Here

On behalf of our team as well as our readers we thank Mr. Satish Kumar Pradhan for sharing this with us and also wish him all the very best.

(You can also share your Interview Experineces, Scanned Question Papers, GK/Current Affairs Articles etc with us @ Currentaffairs4examz@gmail.com..Thank you)

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