The current Repo Rate is 6.5% and that of Reverse Repo Rate is 5.50%.

While the CRR is 6 %, SLR 24%, Inflation rate 8.43% Repo Rate - also called Bank rate is the rate at which central banks lend loans to the member banks of a country. This rate actually impacts the rate at which these member banks grant loans to their customers Reverse Repo Rate - is the reverse of repo rate and is the interest the central bank would pay its member banks. The reverse repo rate is the rate at which banks park their short-term excess liquidity with the Central Bank, while the repo rate is the rate at which the Central Bank pumps in short-term liquidity into the system.

Statutory Liquidity Ratio is the amount of liquid assets, such as cash, precious metals or other short-term securities, that a financial institution must maintain in its reserves. The statutory liquidity ratio is a term most commonly used in India Objectives: The objectives of SLR are:

1. To restrict the expansion of bank credit. 2. To augment the investment of the banks in Government securities. 3. To ensure solvency of banks. A reduction of SLR rates looks eminent to support the credit growth in India. 4. SLR restricts the banks leverage in pumping more money into the economy. On the other hand, CRR, or Cash Reserve Ratio, is the portion of deposits that the banks have to maintain with the Central Bank. 5. The other difference is that to meet SLR, banks can use cash, gold or approved securities whereas with CRR it has to be only cash. CRR is maintained in cash form with RBI, whereas SLR is maintained in liquid form with banks themselves.