the current repo rate in india is 6.50 %.
what is the current repo rate in india?
6.50 %
the important difference from repo rate is that bank can pledge government securities from its slr quota (up to one percent). so even if slr goes below 20.5% by pledging slr quota securities under msf, the bank will not have to pay any penalty. the msf rate is set to 100 basis points above bank rate and currently is at 6.50% as of 1 june 2017.





























section::::qualitative tools.





























section::::qualitative tools.:margin requirements.





























loan-to-value (ltv) is the ratio of loan amount to the actual value of asset purchased.
reserve bank of india
in india, the reserve bank of india (rbi) uses repo and reverse repo to increase or decrease money supply in the economy. the rate at which the rbi lends to commercial banks is called the repo rate whereas the rate at which rbi borrows money from commercial banks is called reverse repo rate. in case of inflation, the rbi may increase the repo rate, thus discouraging banks to borrow and reducing the money supply in the economy. reverse repo rate is always less than repo rate. as of june 2019, the rbi repo rate is set at 5.75% and the reverse repo rate at 5.50%.
repurchase agreement