Reserve bank Current RBI Policy Rates October 2016.Reserve bank of India is the central bank of the country which is entrusted to decide various policy rates and all those candidates who have been preparing for bank exams and all other must be updated with the current RBI policy rates. The policy rates are decided by RBI once in every 3 months and it is quarterly monthly policy review. This is because in a county like India where there is a lot of fluctuations in market forces, it is very much required by the central bank to control the inflation and to regulate the money in the country. One of the major functions of RBI is to curb the inflation. Inflation in the country is the result of several economic factors and RBI decide the policy rates to control inflation and to help the economy of country to grow.
Currently the government has made structural changes in RBI which has removed the autonomy of RBI to decide the policy rates independently. Instead the government has formed a committee of 6 members to decide the policy rates. Here are the current rates which candidates need to know. These rates are often discussed during the interview process and also it is good general awareness question which are often asked in all the examinations.
RBI current policy rates 2016 October
Here are the current policy rates and their impact on the economy. Candidates are required to learn these details and to keep preparing for the bank examinations.
Now to decide the policy rates, here is the procedure
A new procedure to decide policy rates has also been adopted. An act was passed in the parliament which called for keeping the retail price inflation between 26 percent.
It was for the first time that a six member committee took the decision to reduce the repo rate and this decision was a unanimous one.
Here are the details of new policy rates
- Repo rate- 6.25%
- Reverse repo rate- 5.75%
- Bank rate- 6.75%
- Cash reserve ratio- 4%
- Statuary liquidity ratio- 20.75%
- Marginal standing facility- 6.75%