Core concepts
- Repo rate: the rate at which the central bank lends short-term funds to banks
- Reverse repo rate: the rate at which the central bank borrows from banks
- CRR: the share of deposits banks keep with the central bank as cash
- SLR: the share of deposits banks keep in liquid assets themselves
Beyond definitions
Learn what each tool does to the economy: raising the repo rate generally makes borrowing costlier and slows demand. Link terms to a one-line cause and effect.
Keep it current
Rates, schemes and policy announcements change, so check the latest details from official sources close to your exam. For the full exam context, see the banking awareness section page and our banking preparation strategy.
