Tell me about bank rate? What is its use by RBI?

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FRIEND,



RBI stands for RESERVE BANK OF INDIA and this is the bank which is responsible for keeping our country with full of money and with no debt.

The main function of the RBI is to controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934.

The Reserve Bank of India has 4 zonal offices. It has 19 regional offices at most state capitals and at a few major cities in India.

The Different rates in RBI are:

• Bank Rate 9.00%
• Repo Rate 8.00%
• Reverse Repo Rate 7.00%
• Cash Reserve Ratio (CRR 4.75%
• Statutory Liquidity Ratio (SLR) 24.0%
• Base Rate 10.00%–10.75%
• Reserve Bank Rate 4%
• Deposit Rate 8.50%–9.25%

You can have more information about this on the website http://www.rbi.org.in/home.aspx.

The current vacancies in the RBI are given below:

1. Engagement of Pharmacist on Ad hoc Basis at RBI, Nagpur
2. Recruitment of Assistants in Reserve Bank of India
3. Recruitment of Security Guards (Ex-servicemen only) by Chennai Office - Relaxation in the Recruitment Zone Criteria
4. Recruitment of Security Guards
5. Engagement of Pharmacist on ad hoc basis at RBI, Ahmedabad
6. Recruitment of Security Guards
7. Advertisement for the post of Assistant Manager (Rajbhasha) in Grade A
8. Combined Advertisement for the posts of (i) General Manager (Grade E) for heading IS Audit Function in the Department of Banking Supervision and (ii) Chief Archivist in Grade D in the Department of Economic and Policy Research (DEPR) – for RBI Archives Pune
9. Advertisement for the post of Officers in Grade ‘B’ (General)- DR
10. Corrigendum to Combined Advertisement No. 1A /2011-12 for the two posts of Deputy General Manager in Gr. 'D' for DIT
11. Combined Advertisement for the posts of (i) Chief Librarian in Gr.’D’ in DEPR (ii) Deputy General Manager in Gr.D for Management of Mainframe Resources at Data Centres for DIT and (iii) Deputy General Manager in Gr.D for Management of Networks for DIT
12. Appointment of Medical Consultants and Pharmacists on contract basis
13. Engagement of Pharmacists on Daily Remuneration Basis
14. Advertisement for the post of Chief Archivist in Grade ‘D’ (DGM) for Department of Economic and Policy Research
15. Advertisement for the post of Research Officer in Grade ‘B’ (DR) for Department of Economic and Policy Research (DEPR)
16. Advertisement for NIBM Director
17. Combined Advertisement for the Posts of (i) Assistant Manager (Security) in Grade ‘A’ (ii) Assistant Manager(Rajbhasha) in Grade ‘A’ and (iii) Research Officer in Grade ‘B’ for Department of Statistics and Information Management (DSIM)
18. Recruitment - List of candidates admitted for Written Examination (WE) to be held on April 17, 2011 - Manager in Gr. B – Technical (Civil) and Manager in Gr. B – Technical (Electrical)
19. Recruitment of Pharmacist on Contract Basis
20. Special Recruitment Drive for the post of Assistant Manager (Security)
21. Advertisement for the post of Manager-Technical (Civil/Electrical)
22. Recruitment of Executive Interns (On Contract Basis) - Written Examination on October 24, 2010
23. Advertisement for the post of Officers in Grade 'B' (General) – DR
24. Appointment of Part-time Bank's Medical Officer on contract basis with fixed monthly remuneration
25. Corrigendum to Advertisement No. 1 and 1A /2010-11 For Hearing Impaired (HI) candidates only
26. Advertisement for the Post of Executive Interns (on contract basis)
27. Recruitment of Assistant Cook at Hyderabad
28. Advertisement for the post of part - time Professional Counsellor
29. Recruitment for the post of Pharmacist
30. Engagement of Media Personnel for Department of Communication- Written Examination - List of Admitted/ Rejected candidates
31. Preparation of wait-list for the post of Security Guard at Hyderabad
32. Roll Nos. of Candidates Selected for Interview for Grade B (DR) for which Written Exam was held on January 2/3, 2010-03-05
33. Recruitment for the post of Research Officer in Gr.B - DSIM
34. Recruitment of Assistant Manager (Rajbhasha) in Gr. A - Panel Year 2009 - Written Exam on February 21, 2010
35. Recruitment of Chief Librarian - List of Admitted Candidates
36. Recruitment of Legal Officer In Gr. B - Panel Year 2010 - Written Examination on February 14, 2010
37. Recruitment Examination - Research Officer In Gr.'B' Department Of Economic Analysis & Policy Candidates Admitted Centre-Wise
38. Recruitment of Security Guards
39. RBI seeks candidates for the position of Superintending Engineer (Vigilance)
40. Scholarship Scheme for Faculty Members from Academic Institutions
41. Recruitment for the Post of Media Relations Director and Media Managers
42. Recruitment for various Posts in RBI
43. Recruitment of Security Guards for RBI’s Ahmedabad Office
44. Recruitment for officers in Grade 'B' (DR)
45. Recruitment for the post of Security Guards
46. Advertisement for Recruitment of Legal Officers and also Rajbhasha officers
47. Recruitment for the post of Junior Engineer (Civil)/Junior Engineer (Electrical)
48. Recruitment of Junior Engineer (Civil and Electrical)
49. Advertisement for Recruitment of Grade B Officer (DR) and Research Officers in Grade B for DEAP and DSIM
50. Corrigendum Advertisments for the Post of Assistant Manager (Rajbhasha) in Gr. 'A'
51. Application for the Posts of Assistant Manager (Rajbhasha) in Gr. 'A' / Assistant Manager (Security) in Gr. 'A'
52. Application Form - Application for the Posts of Assistant Manager (Rajbhasha) in Gr. 'A'
53. Application Form - Application for the Posts of Assistant Manager (Security) in Gr. 'A'
54. Recruitment of Research Officers in DEAP - Time-table for Written Exam
55. Application for the Post of Part Time Bank's Medical Officer at Officers Quarters, Mumbai
56. Proforma for the Application Form
57. Extension of closing date - Application for the Posts of Officers in Gr. ‘B’ (DR) / Research Officer in Gr. ‘B’ for DEAP / Manager (Technical – Electrical) in Gr. ‘B’
58. Application for the Posts of Officers in Gr. ‘B’ (DR) / Research Officer in Gr. ‘B’ for DEAP / Manager (Technical – Electrical) in Gr. ‘B’

GOOD LUCK.

Originally Posted by dipak4kumar

Sir,
I want to know about Bank Rate and its use by RBI.

Regards,
Dipak Kumar

Dear Friend,

Bank Rate is the rate at which central bank (RBI) lends money to other banks or financial institutions.

If the bank rate goes up, long-term interest rates also tend to move up, and vice-versa.

So we can deduct that if bank rate is hiked, banks will soon hike their own lending rates to ensure that they continue to make profit.

Bank Rate is decided by RBI.

Use of bank rate by RBI:

If their is inflation in market RBI can increase Bank Rate. So banks will also have to increase their lending rates.
In this way in market their will be control on liquidity and it will help RBI to lower down inflation.

At Present Bank Rate is 9%

Bank Rate :


Bank rate is the rate at which central bank of the country allows to commercial banks
Bank rate decided by RBI in India
Bank Rate is a tool , which central bank uses for short -term purposes
Increase deposit rates as well as base rate
Thus any revision in the bank rate indicates that it is likely that interest rates on your deposits are likely to either go up or go down & it can also indicate an increase or decrease in your EMI

Hi Dude......

Bank Rate:
Bank rate is also known as the discount rate and it is also known as the Rate of Interest.Generally central bank or any country's central or Federal Bank charges on loans and advances to a commercial Bank.......
This amount is generally charged as per the banks loans and advances to control the money supply in economy and banking sector.There is also another term called REPO rate it is the repurchase rate at which the the banks which had shortage of money and funds they borrow from the central banks at which the banks issue short term money at loo and cheaper rates.....
It helps in financial support for the banks.......
Bank rate also influences on the Customers as the change in Bank rate will increase or decrease the customers by the influence on the Personnel Loans etc...it increases or decreases draftically.So,the Bank Rate is much important and it is the charge influenced on the commercial banks by the Central Banks or any country's Federal Bank......
This is known as the Bank rate.....

RBI(Reserve Bank of India):

Reserve Bank of India is the Central banks which gives the loans to other banks and Performs many tasks such as...
>>Monitors policy
>>Act's as government or the public sector banks.
>>Monitors and regulates banks financial Institutions
These are some of the activities which are conducted by the Reserve Bank of India.....
The main role of RBI is to control and regulate the money and keeping the reserves of the money with the view of secure and to control the country's economy and manage the currency and credit system....
RBI Bank rate Influence:
Reserve bank also lends the money to other banks and the rate at which it lends the money to other banks is known as the bank rate.When ever the RBI reduces the Bank rate it is the Indication that the .commercial banks can lend money from the Reserve Bank and can give up these money for the customers as the loans.This means that the RBI when decreases the bank rate the banks can lend money and this extra money can be distributed for the customers.....
This is known as the RBI Banks Rate.....
REGARDS:

Thanks for the answer.