The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points from 8.0% to 7.75% with immediate effect. The Cash Reserve Ration has been kept unchanged at 4%. Subsequently the reduction in the repo rate made the reverse repo rate adjust to 6.75% and the marginal standing facility rate and Bank Rate to 8.75%.
Reducing Repo Rate will,
- Pave way for cheaper home and auto loans.
- Lower cost of funds for corporate borrowers.
Knowledge is Wealth
Reserve Bank of India was Nationalized in 1949 and it is a statutory body.
The Emblem of RBI is Panther and Palm Tree.
Manmohan Singh was the only Prime Minister who was also served as the RBI’s Governor.
The First Indian to be made the Governor of RBI was CD Deshmukh.
The First Governor of RBI was Osborne Smith.