Sentences with phrase «rbis rate»

So I don't see any more efficiency then in previous system with regards to transmission of RBIs rate changes.

If RBI really wanted instant effective transmission of its policy rates... then why not keep it simple RBI rate + bank spread.

In fact a majority of the section of loans will not see the transmission of RBI rates until their period of reset is completed.

What does RBI rate cut means to you and me?

Dear Pradeep, We can't say there is «no need» to reduce the base rate, because the difference of basis points between the RBI rate cuts & banks lending rate cuts is surely in the rage of 50 to 60 basis points.

Not exact matches

The RBI is set to announce its monetary policy decision later Tuesday, with the market forecasting a 25 basis points cut in policy rates.

In Asia, the Reserve Bank of India (RBI) cut its key repo rate by 25 basis points to 7.75 percent on January 15, more than two weeks before its scheduled meeting, catching markets by surprise.

11 players have over a 10 % RBI / AB rate.

Chennai, India About Blog Latest news on banking, finance, money, loans, insurance, currency, NBFCs, interest rates, RBI, micro finance, Government Finances, Public Financing, Bank Credit, Financial Regulation.

Crude oil price hike may force RBI to up key interest rates in August, say three foreign brokerages

At that level, with the Repo Rate at 6.0 %, it would still be +1.5 % positive Real Rate and thus the RBI will sound hawkish but not hike the Repo Rate.

Since we do not expect RBI to cut interest rates, in this scenario, returns from liquid funds might improve over the last year and it could become a better surrogate to fixed deposits for short term savers.

In a latest move to bring in more transparency in costs for home loan borrowers, RBI has introduced an Indian Banks Base Rate (IBBR) which is now used as a new benchmark for floating rate produRate (IBBR) which is now used as a new benchmark for floating rate produrate products.

If RBI hikes interest rates, what is the impact on your home loans, fixed deposits, debt mutual funds etc.,?

So, what is the link between the RBI's key policy rates and Deposit / Lending rates?

So, if the RBI hikes interest rates (like Repo rate) due to the factors discussed above, an increased repo rate leads to higher cost of short - term money.

To control inflation and the growth, RBI uses certain tools like CASH RESERVE RATIO, STATUTORY LIQUIDITY RATIO, REPO RATE, REVERSE REPO RATE etc., (Related Article: «What is CRR, SLR, Repo Rate & Reverse Repo RRATE, REVERSE REPO RATE etc., (Related Article: «What is CRR, SLR, Repo Rate & Reverse Repo RRATE etc., (Related Article: «What is CRR, SLR, Repo Rate & Reverse Repo RRate & Reverse Repo RateRate?

The RBI's rate cuts does not necessarily mean that the borrowers benefit immediately.

while I see at the end of article below update: «Latest News (04 - October - 2016): RBI cuts Repo Rate by 25 basis points to 6.25 % and keeps CRR unchanged.

If RBI increases rates by say 100 basis points, banks increase their benchmark rates by say 50 basis points.

What is the impact of RBI's rate cut on home loan and other loan EMIs (Equated Monthly Installments)?

I would think with these thin spread the banks would have to really pass on the rates from RBI more quickly then in past though never instant.

2 — Budget rules & RBI's policy review in Feb etc have to be tracked and see if there is any impact on lending rates..

As the inflation softens (mostly YES) we can expect RBI to cut other key policy rates too.

An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with the RBI, thereby decreasing the supply of money in the market.

They are also telling that for newly sanctioned Home Loans the interest rate is RBI MCLR rate plus Spread rate of 0.40 % with one year reset (MCLR - 8.90 % + Spread rate - 0.40 % = 9.30 %) where MCLR is floating and Spread rate is constant.

Same way, banks borrow money from RBI by paying interest rate, when RBI reduces this interest rate (payable by banks to RBI), banks will have to pay lesser interest amount on their borrowings.

You might have observed that RBI has cut interest rates to the tune of 125 basis points in this fiscal year.

Latest News (05 - April - 2016): RBI cuts Repo Rate & SLR by 25 basis points.

RBI governor has cut Repo Rate only and has kept other key policy rates (CRR & SLR) unchanged.

Dear Onkar, As mentioned in the article, though RBI cuts key policy rates, banks may not immediately pass the benefits to its customers.

The question is with new MCLR system is Base Rate likely to become fixed rate given that Bank may have motivation to change it with RBI focusing on MRate likely to become fixed rate given that Bank may have motivation to change it with RBI focusing on Mrate given that Bank may have motivation to change it with RBI focusing on MCLR.

Base rate system was introduced by RBI in July 2010 to ensure that banks can not lend below a certain benchmark.

Even though RBI in June 2012 had mandated Banks not charge pre-payment penalties on floating rate home loans, it is better to verify the same with the lenders.

To meet statutory requirements (like CRR / SLR) banks have to keep certain reserves with RBI, so when percentage of reserves that banks have to keep with RBI comes down, banks may have more monies to do business, this may lead to lower loan rates.

So, any cut or increase in rates (especially key rate like Repo Rate) by the RBI is not getting transmitted to the bank customers immediatrate like Repo Rate) by the RBI is not getting transmitted to the bank customers immediatRate) by the RBI is not getting transmitted to the bank customers immediately.

RBI keeps the key interest rates unchanged.

The next day all major Newspapers carried an important headline and that is about «RBI cuts key interest rate.

Banks have the final say in deciding their interest rates, not RBI.

A cut in Repo and Reverse Repo rates basically reduces the bank's cost of borrowing from the RBI to add to its reserves.

While now the MCLR should factor in the repo rate, but how much really the weightage is of this cost of borrowing from RBI for the bank as against rest of the marginal costs.

Anyways with frequent regime change from prime lending rate, base rates and now MCLR RBIs any ways is not able to control their rates.

Dear Mukesh, When RBI cuts Repo rates (or) Key policy rates, banks will generally (may not be immediately) cut the lending rates too.

The rate at which banks borrow money from the RBI by selling their surplus government securities to the central bank (RBI) is known as «Repo Rate.&raqrate at which banks borrow money from the RBI by selling their surplus government securities to the central bank (RBI) is known as «Repo Rate.&raqRate.»)

So the chances of base rates coming down looks slim as does RBI reducing repo rates in Feb..

Dear GP, MCLR is more transparent, but your banker may or may not reset the rate immediately after an interest rate change by the RBI.

If RBI keeps the rates unchanged in its next review, that means there is a difference of around 60 basis points which needs to be transmitted.

At present, the banks are slightly slow to change their interest rate in accordance with Repo Rate change by the rate in accordance with Repo Rate change by the Rate change by the RBI.

The rate of Interest on these RBI Bonds has been fixed at 8 %.

«RBI (Reserve Bank of India) has cut interest rates.»