RESERVE BANK OF INDIA'S REPO RATES

RESERVE BANK OF INDIA'S REPO RATES

 

 

 

RESERVE BANK OF INDIA'S REPO RATES

 

The REPO rate is the rate at which the RBI lends to the Banks.

The Reverse REPO rate is the rate at which RBI accepts deposits from the Banks.

The RBI’s REPO rates normally acts as a Bench Mark rate for Banks to fix their Deposit and Lending rates.

The following Table gives the RBI’s Repo and Reverse REPO rates for the past several years.

TABLE VII

Reserve bank of India’s Repo and Reverse Repo rates

Year                                             repo rate                        reverse repo rate

                                                               %                                          %

Nov    2006                                          7.00                                     6.00

Nov    2007                                          7.75                                      6.00

Nov    2008                                          7.50                                      6.00

Sep     2009                                          4.75                                      3.25

Mar     2010                                          5.00                                     3.50

April   2010                                          5.25                                      3.75

July     2010                                          5.75                                      4.50

Sep      2010                                          6.00                                      5.00

Nov     2010                                          6.25                                      5.25

Jan       2011                                          6.50                                      5.50

Mar      2011                                          6.75                                      5.75

May     2011                                          7.25                                      6.25

 June     2011                                          7.50                                      6.50

  Jul       2011                                          8.00                                      7.00

  Sep      2011                                          8.25                                      7.25

  Oct      2011                                          8.50                                      7.50

   Apr      2012                                          8.00                                      7.00

  May     2013                                          7.25                                       6.25

  Sep     2013                                          7.50                                       6.50 

(Source: RBI Bulletins)

From the above Table we can observe that the RBI reduced the REPO rate in September 2009 but thereafter because of the inflationary conditions the RBI has continuously increased the rate till October 2011 when it peaked at 8.50%.Only from April 2012 did the RBI started to reduce the rates marginally and brought it to 7.25% in May 2013. However due to persistent high inflation the RBI once again increased it to 7.50% in September 2013.

 Tag; To understand the full impact of the REPO rates and their impact on Bank Depositors read the article 'Bank Depositors - a Discriminated Class' in www.kaushikvichar.com

 

Author

Kaushik Vichar

comments powered by Disqus