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Saturday, September 21, 2019

Mensuration Formulae - Part 2



Mensuration Formulas for 3D Figures


8. Mensuration Formulas for CUBOID


In the following formulae, l = length, b = breadth and h = height


Total surface area of cuboid = 2 (lb + bh + lh)


Length of diagonal of cuboid= √(l2+b2+h2)


Volume of cuboid = l × b × h


9. Mensuration Formulas for CUBE


In the following formulae, a = side of a cube


Volume of cube = a3


Total surface area of cube = 6a2


Length of Leading Diagonal of Cube = a√3


10. Mensuration Formulas for CONE


In the following formulae, r = radius of base, l = slant height of cone and h = height of the cone (perpendicular to base)


Slant height of a cone = l =√(h2+r2 )


Curved surface area of a cone = C = π × r × l


Total surface area of a cone = π × r × (r + l)


Volume of right circular cone =1/3 πr2h


11. Mensuration Formulas for CYLINDER


In the following formulae, r = radius of base, h = height of cylinder


Curved surface area of a cylinder = 2πrh


Total surface area of a cylinder = 2πr(r + h)


Volume of a cylinder = πr2h


12. Mensuration Formulas for SPHERE


In the following formulae, r = radius of sphere, d = diameter of sphere




Surface area of a sphere = 4πr2 = πd2


Volume of a sphere = (4/3) πr3 = (1/6)πd3


13. Mensuration Formulas for HEMISPHERE


In the following formulae, r = radius of sphere


Volume of a hemisphere =(2/3)πr3


Curved surface area of a hemisphere = 2πr2


Total surface area of a hemisphere = 3πr2


14. Mensuration Formulas for HOLLOW CYLINDER


Hollow cylinder made by cutting a smaller cylinder of same height and orientation out of a bigger cylinder.


Volume of hollow cylinder = πh(R2– r2)
(Where, R = radius of cylinder, r = radius of cavity, h = height of cylinder)


15. Mensuration Formulas for FRUSTUM OF A RIGHT CIRCULAR CONE


Frustum is created when a plane cuts a cone parallel to its base.
In the following formulae, R = radius of the base of the frustum, r = radius of the top of the frustum,
h = height of the frustum, l = slant height of the frustum


If a cone is cut by a plane parallel to the base of the cone, the lower part is called the frustum of the cone.


Slant height of the frustum =l=√(h2+(R-r)2)


Curved surface area of frustum = π(R + r)l


Total surface area of frustum = π(R + r)l + π(R2 + r2)


Volume of the frustum=(1/3)πh(R2+r2+Rr)


16. Mensuration Formulas for PRISM




Prism consists of two polygonal bases which are parallel to each other.


These bases are joined by lateral faces, which are perpendicular to the polygonal bases.


The number of lateral faces is equal to the number of sides in the polygonal base. Thus, the base of a prism could be of various shapes, namely, triangular, quadrangular, pentagonal etc.


Volume of prism = Base area × height


Lateral surface area of prism = perimeter of base × height


Total surface area of prism = Lateral surface area + (2 × base area)


17. Mensuration Formula for PYRAMID




Pyramid consists of a polygonal base and triangles at its sides. These triangles are called faces.


The base could be of any shape, whereas the faces are generally isosceles triangles.


All these triangular faces meet in a single point called the apex.


Total surface area of pyramid = base area + (number of sides × ½ × slant height × base length)


Volume of pyramid = (1/3) × base area × height


Mensuration Formulas Part 1



1. Mensuration Formulas for RECTANGLE


Area of Rectangle = Length × Breadth.                               


Perimeter of a Rectangle = 2 × (Length + Breadth)


Length of the Diagonal = √(Length2 + Breadth2)


2. Mensuration Formulas for SQUARE


 

Area of a Square = Length × Length = (Length)2 


Perimeter of a square = 4 × Length


Length of the Diagonal = √2 × Length


3. Mensuration Formulas for PARALLELOGRAM


Area of a Parallelogram = Length × Height


Perimeter of a Parallelogram = 2 × (Length + Breadth)


4. Mensuration Formulas for TRIANGLE


Area of a triangle=(1/2)(Base × Height)=(1/2)(BC×AD)


For a triangle with sides measuring a, b and c, respectively:

Perimeter = a + b + c


s = semi perimeter = perimeter/2 =  (a+b+c)/2


Area of Triangle, A=


(This is also known as “Heron’s formula”)

Area of isosceles triangle = 


(Where a = length of two equal side, b = length of base of isosceles triangle.)


Area of an equilateral triangle = 


(Where, a is the side of an equilateral triangle)

5. Mensuration Formulas for TRAPEZIUM


Area of a trapezium = (1/2) × (sum of parallel sides) × (distance between parallel sides)
= (1/2) × (AB+DC) × AE


Perimeter of a Trapezium = Sum of All Sides


6. Mensuration Formulas for RHOMBUS


 

Area of a rhombus=(1/2)×Product of diagonals


 

Perimeter of a rhombus = 4 × l
(where l = length of a side)


7. Mensuration Formulas for CIRCLE and SEMICIRCLE


In the following formulae, r = radius and d = diameter of the circle


Area of a circle = πr2= (πd2)/4


Circumference of a circle = 2πr = πd


Circumference of a semicircle = πr


Perimeter of the semicircle = (πr+d)


Area of semicircle =(πr2)/2 


Length of an arc = (2πrθ)/360, where θ is the central angle in degrees.


Area of a sector = (1/2) × (length of arc) × r = (πr2θ)/360








Part 1 deals largely with 2D formulas. You can also Read Part 2  of Mensuration Formula




Tips & Tricks For Spotting Errors in English 



Even those of you who are well-versed with English end up making the silliest of errors in grammar. It is a very natural tendency but error-spotting is not an art that one can’t master. It is just a matter of swearing by some guidelines and practice! Here are 26 tips for error spotting in English:




1. Certain nouns possess a singular form but still represent plurality and thus, take a plural verb when used in a sentence.
E.g. Cattle, peasantry, people, clergy, police.
Thus,


The Police has come (Incorrect)


The Police have come (Correct)


2. Certain nouns always take the plural verb because their form is always plural.
E.g. Scissors, trousers, spectacles, thanks, premises.
Thus,


The scissors is kept on the table. (Incorrect)


The scissors are kept on the table. (Correct)


3. When a number is followed by a noun denoting measure, length, money, number or weight, the form of the nouns does not change so long as they are followed by another noun or pronoun.
E.g. Million, pair, metre, year, dozen, foot, head.
Thus,


This is a nine-metres cloth. (Incorrect)


This is a nine-metre cloth. (Correct)


4. When a number is followed by a noun denoting measure, length, money, number or weight, but these are not followed by another noun or pronoun, then they take the plural form.
E.g. Million, pair, metre, year, dozen, foot, head.
Thus,


This sari is nine yard long. (Incorrect)


This sari is nine yards long. (Correct)


5. Certain nouns, especially of the collective category, are used as singular when they specify a unit.
E.g. Public, team, committee, government, audience, orchestra, company, jury.
Thus,


The public were unanimous in their opinion. (Incorrect)


The public was unanimous in its opinion. (Correct)


6. Certain nouns, especially of the collective category, are used in plural when they specify a difference of opinion or class.
E.g. Public, team, committee, government, audience, orchestra, company, jury.
Thus,


The jury was divided in its opinion. (Incorrect)


The jury were divided in their opinion. (Correct)


7. If the pronoun ‘one’ is used, it must be maintained throughout the sentence.
Thus,


One must respect his elders.  (Incorrect)


One must respect one’s elders. (Correct)


8. The word ‘whose’is used for living people and ‘which’ is used for non-living things or ideas.
Thus,


Which box is kept on the table? (Incorrect)


Whose box is kept on the table?  (Correct)


9. ‘Less’ is used to denote quantity while ‘fewer’ is used to denote number.
Thus,


No less than twenty people were (Incorrect)


No fewer than twenty people were (Correct)


10. ‘One of’is always followed by noun in the plural form.
Thus,


She is one of the least important person in the office. (Incorrect)


She is one of the least important people in the office. (Correct)


11. Only ‘than’ should be used after ‘no other’
Thus,


I like no other movie but Titanic. (Incorrect)


I like no other movie than Titanic. (Correct)


12. After the word ‘Know’, ‘how, ‘what’ or ‘when’ should be used before using the infinitive.
Thus,


I know to speak English. (Incorrect)


I know how to speak English. (Correct)


13. If the verb indicates a purpose, an infinitive must be used and if the verb indicates a cause, a gerund must be used.
Thus,


He went to the mall for watching a movie. (Incorrect)


He went to the mall to watch a movie. (Correct)


He was suspended to show indiscipline. (Incorrect)


He was suspended for showing indiscipline.(Correct)


14. ‘As’ is not used with verbs like ‘appointed’, ‘elected’ , ‘considered’, ‘called’ but it is used with the word ‘regard’.
Thus,



He was elected as Secretary of the organisation. (Incorrect)


He was elected Secretary of the organisation. (Correct)


I regard Sahil my best friend. (Incorrect)


I regard Sahil as my best friend. (Correct)


15. Adverbs should not be confused with adjectives. An adjective describes the characteristic of the subject while an adverb describes the action of the verb.
Thus,


The horse looked beautifully. (Incorrect)


The horse looked beautiful. (Correct)


16. Question tags are always the opposite of the sentence which means that if the sentence is positive, the question tag is negative and vice versa.
Thus,


You were dancing, were you? (Incorrect)


You were dancing, weren’t you? (Correct)


17. An infinitive verb should never be split.
Thus,


I request you to kindly tell me. (Incorrect)


I request you kindly to tell me. (Correct)


18. A pronoun after ‘like’, ‘unlike’ and ‘let’ takes an objective case.
Thus,


You will never find a woman like she. (Incorrect)


You will never find a woman like her. (Correct)


Let I do it. (Incorrect)


Let me do it. (Correct)


19. The relative pronoun ‘that’is used instead of ‘who’ or ‘which’ after adjectives in the superlative degree.
Thus,


This is the best which she could do. (Incorrect)


This is the best that she could do. (Correct)


20. To show equality ‘as’ is used both before and after the adjective.
Thus,


I can run as fast, if not faster than you. (Incorrect)


I can run as fast as, if not faster than you. (Correct)


21. Even though more than one’indicates a plural sense, it agrees with a singular noun and takes a singular verb.
Thus,


More than one students completed their project. (Incorrect)


More than one student completed his project. (Correct)


22. ‘Scarcely’and ‘hardly’ are followed by ‘when’ and not by ‘than’.
Thus,


Hardly had the teacher left the room than the pupils started enjoying. (Incorrect)


Hardly had the teacher left the room when the pupils started enjoying. (Correct)


23. ‘Though’ is followed by ‘yet’and not by ‘but’.
Thus,


Though he is poor but he is honest. (Incorrect)


Though he is poor, yet he is honest. (Correct)


24. ‘Lest’must be followed by ‘should’ or by nothing at all and ‘Such’ must be followed by ‘as’.
Thus,


Work hard lest you will fail. (Incorrect)


Work hard lest you should fail. (Correct)


Work hard lest you fail. (Correct)


He is such a writer that everybody should read his books. (Incorrect)


He is such a writer as everybody should read his books. (Correct)


25. ‘Unless’ expresses a condition and is always used in the negative sense. Thus ‘not’ is never used with ‘unless’.
Thus,


Unless you do not work hard, you will not excel in the examination. (Incorrect)


Unless you work hard, you will not excel in the examination. (Correct)


26. ‘When’denotes a general sense and ‘while’ implies a time duration of doing something.
Thus,


When learning how to sing, technique is of utmost importance. (Incorrect)


While learning how to sing, technique is of utmost importance. (Correct)


Liked this article on Spotting Errors in English? Let us know in the comments section!


Tuesday, August 6, 2019

Scrapping Article 370 for Kashmir and India


  • Article 370 mainly allowed Kashmir’s accession to India as it guaranteed special status to the Valley.
  • It gave Jammu and Kashmir exemption from the Indian Constition.
  • The scrapping of Article 370 would affect the political status of the state.
  • India was a legitimate power in Jammu and Kashmir because of this Article. Once it’s gone, India will be reduced to an occupational force in the region.

Benefits of Removing Article 370

Some of the biggest possible advantages of abolishing Article 370 are:

1. The state, upon removal of Article 370, will prosper economically and socially.
2. The threat of militancy will reduce via social amalgamation.
3. Kashmir could serve as one of the top tourist destinations after complete development.
4. It will supposedly prove to be good diplomacy to deal with Pakistan over territorial disputes.
5. It will politically give chance to all parties to rule the state and allow its development.

Article 370

Article 370 is an article of the Constitution of India, Part XXI: Temporary, Transitional and Special Provisions. Moreover, it grants a special status of autonomy to the state of Jammu & Kashmir.

Article 370’s Inclusion in the Constitution

  • Originally, all princely states, including Jammu & Kashmir, merged with India on three matters: defense, foreign affairs and communications.
  • Princely states had to draft their own constitutions which would govern other aspects of society.
  • However, most states rejected the necessity of a separate constitution and adopted the Indian Constitution.
  • Hence, this made those princely states equivalent to other Indian provinces.
  • However, Jammu & Kashmir made its own constitution and asked for Indian Constitution to apply only on the three matters of original merger.
  • Thus, Article 370 was included in the Indian Constitution according to which other articles of Indian Constitution will apply to Jammu & Kashmir with the agreement of State’s constituent assembly.
  • Moreover, this Article was only temporary.

Article 370’s Permanence

  • Article 370 was meant to be a temporary provision applied to the state of Jammu & Kashmir.
  • The Constituent Assembly of Jammu & Kashmir had the authority to repeal or modify the state constitution. Hence, no external body could make any changes to the clauses.
  • The Jammu & Kashmir Constituent Assembly dissolved on 25 January 1957 without any decision.
  •  Article 370 has become a permanent provision in Indian Constitution according to Jammu & Kashmir High Court.
  • Therefore, Jammu & Kashmir has a special autonomous status in the country.

Original Implications of Article 370

Article 370 included six special provisions for the state of Jammu & Kashmir at the time of Preparation:
  1. Exempting the State from completely applying the Indian Constitution. The state could have its own Constitution.
  2. Limitation of central legislative powers over the State at the time of framing, to matters of defense, foreign affairs and communications.
  3. Extension of other constitutional provisions of Central Government to State only with State Government’s agreement.
  4. The ‘concurrence’ (agreement) was only provisional. It required State’s Constituent Assembly’s consent.
  5. State Government’s authority to give ‘concurrence’ lasted only until the State Constituent Assembly was assembled. After the Assembly finalized the scheme of powers and dispersed, no further changes were possible.
  6. Thus, Article 370 could be repealed or amended only upon the recommendation of the State’s Constituent Assembly.

Major Presidential Orders Regarding Article 370

  • Presidential Order – 1950: Specifies which articles of Indian Constitution applies to the state through the original agreement.
  • Presidential Order – 1952: Represents abolition of monarchy in Jammu & Kashmir.
  • Presidential Order – 1954: Includes
    • allowing Indian citizenship to permanent residents of Jammu & Kashmir
    • extending Supreme Court of India’s jurisdiction over the state.
Almost 50 Presidential orders are issued since then.

Shujaat Bhukari Assasination

  • Shujaat Bhukari, a Kashmiri Journalist and the editor of Rising Kashmir was shot dead by 4 assailants on 14th June 2018.
  • Bhukari was known as a brave journalist who liked to voice his opinion, the reason of his death is still unknown.
  • Shujaat Bhukari’s case is a rare case of Kashmir where the angle of militants assasinating him is being kept aside for his help to militants in Kashmir.
  • This cold blooded murder in a normal morning in Kashmir, right outside Bhukaari’s own office raises questions again on Article 370, it’s reliability and it’s failure in many ways at maintaing civilian peace in Kashmir

Tuesday, July 30, 2019

List of Banks and Headquarters of India - Chairperson/MD/CEO & Logos



India has a total of 27 public sector banks. These include 21 are nationalized banks and 6 are State Bank of India and its associates. With a capital of 500 crore each, the IDBI in the year 2011 and the Bhartiya Mahila Bank in the year 2014 were nationalized. This article brings you the List of Banks, their headquarters, CEO/MD/Chairperson, their logos and tag line to help you have a better grasp at this topic. You can also download Banks and Headquarters – GK Notes in PDF format for future reference.

Why are Banks and Headquarters important?

A bank is a financial institution that accepts deposits from the public and creates credit.
  • It also Performs lending activities. The banks perform these lending activities through capital markets, either directly or indirectly. Banks are highly regulated in most countries. This is because of their importance in the financial system and influence on national economies.
  • The functioning of a Bank is one of the most complicated of corporate operations. Since Banking involves dealing directly with money, governments in most countries regulate this sector very strictly.
  • In India, the regulation traditionally has been very strict.
Questions about Banks, their headquarters, logo, tag lines and who are the bank’s CEO/MD are being asked frequently in all competitive exams. SBI PO, SBI Clerk, IBPS PO, IBPS Clerk, and other banking exams test your knowledge in this above topic. Given below is the list of Banks and Headquarters in alphabetical order to help you score better in this topic.

List of Banks and Headquarters 2019

The below list of Banks and Headquarters includes details such as their Chairperson/MD/CEO, Logos and Tagline of the respective banks.
Bank’s NameHead QuartersChairperson/CEO/MDLogoTagline
Allahabad BankKolkata
Shri CH. S. S. Mallikarjuna Rao
Banks and Headquarters - TestbookA tradition of trust
Andhra BankHyderabadShri J PackirisamyBanks and Headquarters - TestbookWhere India Banks
Bank of BarodaMumbai
Managing Director & CEO – Shri P. S. Jayakumar
Non-Executive Chairman – Dr. Hasmukh Adhia
Banks and Headquarters - TestbookIndia’s International Bank
Bank of IndiaMumbaiShri G. PadmanabhanBanks and Headquarters - TestbookRelationship beyond banking
Bank of MaharashtraPuneShri A,S RajeevBanks and Headquarters - TestbookOne Family One Bank
Canara bankBangaloreShri. R A Sankara NarayananBanks and Headquarters - TestbookTogether We Can
Central Bank of IndiaMumbaiPallav MohapatraBanks and Headquarters - TestbookBuild a better life around us
Corporation BankMangaloreP.V. BharathiBanks and Headquarters - TestbookProsperity for All
Indian BankChennaiPadmaja ChunduruBanks and Headquarters - TestbookYour Own Bank
Indian Overseas BankChennaiShri Karnam SekarBanks and Headquarters - TestbookGood people to grow with
Oriental Bank of CommerceNew DelhiMukesh Kumar JainBanks and Headquarters - TestbookWhere every Individual is committed
Punjab National BankNew Delhi Shri. Sunil MehtaBanks and Headquarters - TestbookA Name You Can Bank Upon
Punjab & Sind BankNew Delhi
Dr. Charan Singh
Shri S. Harisankar
(MD & CEO)
Banks and Headquarters - TestbookWhere service is a way of life
Syndicate BankKarnatakaAjay Vipin NanavatiBanks and Headquarters - TestbookFaithful and Friendly
Union Bank of India MumbaiRajkiran Rai G.Banks and Headquarters - TestbookGood people to bank with
United Bank of IndiaCalcuttaShri Ashok Kumar PradhanBanks and Headquarters - TestbookThe bank that begins with “U”
UCO BankCalcuttaKewal HandaBanks and Headquarters - TestbookHonours Your Trust
IDBIMumbaiM R KumarBanks and Headquarters - Testbook
1.Banking For all
2.Aao Sochein Bada
3.Bank Aisa Dost Jaisa
State Bank of IndiaMumbaiShri Parveen Kumar GuptaBanks and Headquarters - Testbook
1.“Pure Banking, Nothing Else”
2.“With You – All The Way”
3.“A Bank Of The Common Man”
4.“The Banker To Every Indian”
5.“The Nation Banks On Us

Monday, July 22, 2019

Some_Important_Acts Related to Bank


🔴NEGOTIABLE INSTRUMENT ACTS -1881
⚫Section 4 :- Promissory Notes
⚫Section 5 :-Bill of Exchange
⚫Section 6 :- Cheque
⚫Section 13 :- Negotiable instrument
⚫Section 123 :- Cheque Crossed Generally
⚫Section 124,126 : -Cheque Crossed Specially
⚫Section 130 : -Cheque bearing Not Negotiable
⚫Section 118 :- Presumption as to Negotiable instrument

🔴RESERVE BANK ACT (RBI ACT 1934)

⚫Section 17 :- Define Banking Business
⚫Section 18 :-Deals With Emergency Loan To Bank
⚫Section 22 :-Exclusive Rights To Issue Currency Notes In India
⚫Section 24 :-Maximum Denomination a Note Can Be Rs 10,000
⚫Section 26 :- Describe The Legal Tender Character of Indian Bank Notes
⚫Section 28 :-Form Rule Regarding The Exchange Of Damaged and imperfect Notes
⚫Section 31 :-In India only RBI or the central government issue and accept promissory notes that are payable on demand
⚫Section 42 :-Every schedule bank must have an average daily balance with RBI

🔴BANKING REGULATION ACT -1949

⚫Section 10 :-Power of RBI to appoint chairman of banking company
⚫Section 11 :-Recruitment as to minimum capital and reserve.
⚫Section 12 : -Regulation of Paid of capital, authorized capital,voting rights of shareholder
⚫Section 21 :-To control advances by banking company
⚫Section 21(A) : - Rate of interest charged by banking company
⚫Section 22 :- license of banking company
⚫Section 23 :-Restriction on opening transfer of business
⚫Section 29 :-Account and balance sheet
⚫Section 36 :-Power of central government to acquire banking company in a certain case
⚫Section 44 :-Amalgamation of banking company
⚫Section 47 :-Power of RBI to impose penalty

🔴Some Other Important Acts Related To Banking -

⚫SBI ACT: -1955
⚫SBI SUBSIDIARY ACT: - 1959
⚫DICGC ACT :- 1961
⚫EXIM ACT: - 1981
⚫NABARD ACT: - 1981
⚫RRB ACT: - 1976
⚫NHB ACT: - 1987
⚫SIDBI ACT :- 1989
⚫SARFASI ACT :- 2002
⚫FEMA ACT: - 1999
⚫CREDIT INFORMATION CORP :- 2005
⚫PMLA ACT: -2002



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Wednesday, June 26, 2019

Key Rates used by RBI Repo Rate, MSF Rate & Bank Rate


Key Rates used by RBI

The Bank has various Key Rates at its disposal to influence the money supply in the market through its monetary policy.

repo rate



What is Liquidity Adjustment Facility?

Liquidity Adjustment Facility (LAF) helps banks adjust their daily liquidity mismatches by pledging government securities over and above the SLR requirement. Repo Rates and Reverse Repo Rates form a part of the Liquidity Adjustment Facility.

What is RBI Repo Rate?

  • RBI Repo Rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks. By controlling the Repo Rate, and the lending rates to commercial banks, the RBI also indirectly affects the lending rates granted by commercial banks to end consumers.
  • When there is low inflation along with low-capacity utilisation and the market demands more supply of money, the RBI decreases the RBI Repo Rate. By decreasing the Repo Rate, the RBI encourages commercial banks to borrow more money from it.
  • Increasing RBI Repo Rate means that commercial banks don’t borrow money liberally from the RBI, and avoid doing so. This slows down the economic progress, reduces the liquidity in the market, and the reduction in money supply reduces the inflation. This is an important measure in curbing inflation.

Stay prepared by updating your general knowledge with this course!

What is RBI Reverse Repo Rate?

  • Reverse Repo Rate is the rate at which the Reserve Bank of India borrows money from commercial banks within the country. It is one of the monetary policy instrument which can be used to control the money supply in the country.
  • Other things remaining constant, an increase in the reverse repo rate will result in decrease in the money supply and vice-versa.
  • An increase in reverse repo rate implies a situation where commercial banks get more incentives if they park their funds with the RBI, thereby decreasing the supply of money in the market.

repo rate

What is Marginal Standing Facility (MSF) Rate?

  • Another one of the Key Rates used by RBI is the Marginal Standing Facility Rate.
  • Marginal Standing Facility is a new window of Liquidity Adjustment Facility (LAF) created by Reserve Bank of India
  • It was created in RBI’s credit policy of May 2011.
  • At this rate, the banks are able to borrow overnight funds from RBI against the approved government securities.
  • Marginal standing facility (MSF) acts as a support plan for banks, letting them borrow funds from the Reserve Bank of India in an emergency situation wherein the inter-bank liquidity dries up completely.
  • Banks borrow from RBI by pledging government securities at a rate comparatively higher than the Repo Rate under liquidity adjustment facility (LAF).
  • Under MSF, banks can borrow funds approximately around one percentage of their net demand and time liabilities (NDTL).

repo rate

What is Bank Rate?

  • Bank rate is the rate of interest at which a central bank charges its loans and advances to a commercial bank.
  • In case of shortage of funds, banks can borrow from the central bank based on the monetary policy of the country.
  • The borrowing is commonly done via repo rate, it is more applicable when there is a liquidity crunch situation in the market.
  • The Reserve Bank of India determines the bank rate at which it provides loans to commercial banks with no collateral. This rate is revised periodically, reactively depending on the economy.

What is Cash Reserve Ratio (CRR)?

  • CRR is the basic percentage of a bank’s net demand and time liabilities (deposits) that banks ought to maintain as cash balance with the RBI.
  • A high CRR percentage means banks have less funds to lend, a low CRR does the opposite.
  • This in turn impacts liquidity in the economy.
  • CRR is used by RBI to tighten or ease liquidity by increasing or decreasing it as per the situation demands.

What is Statutory Liquidity Ratio (SLR)?

  • Statutory Liquidity Ratio is the percentage of net demand and time liabilities (deposits) that banks ought to maintain in safe and liquid assets approved by the RBI.
  • The assets can be in the form of government securities, cash and gold.
  • Any fluctuations in SLR often tend to influence the availability of resources in the banking system for lending to the private sector.

Important Key Rates used by RBI Updated as of June 2019

Important RBI Policy Rates and Ratio – April, 2019
Current Cash Reserve Ratio4%
Current Reverse Repo rate5.5%
Current Repo Rate5.75%
Current Marginal Standing Facility Rate6%
Current Bank Rate6%
Current Statutory Liquidity Ratio19%

You can visit the RBI Official Site