Dr. RAGHURAM RAJAN – A MAN ON
MISSION
Cut in REPO RATE by 50bps.
REPO RATE is the rate at which the central bank of a contr! len"s #one! to
co##ercial banks in the e$ent of an! shortfall of fn"s.
%URR&N' REPO RATE- (.)*+
CRR – ,+ nchan-e"
SLR – ./.*+
REVERSE REPO RATE – *.)*+ fall b! /+
Impact on commercial bans!
• S0I cts len"in- rate to 1.2+
• An"hra bank cts len"in- rate to 1.)*+
• Man! banks cts their ho#e loan interest rates
• Interest rates on loan for SM& -ets "ecreases
• 3N0 ho#e loan rate is 1.(4 an" no 5rocessin- fee
• An" #an! others bank are cttin- their rates on "i6erent t!5es of loan
"#$ %
/. 'o increase in in$est#ent c!cle
.. 'o "e$elo5 infrastrctre
2. 'o create cons#5tion abilit!
,. 'o low "own ho#e loans rate
*. 'o control realt! sector
(. 'o boost ato#obile an" a-ricltre sector
). 'o increase 7ow of #one!
8. 'o increase "e#an" of -oo"s
1. 'o increase 5er ca5ita inco#e
/4.Increase in ta9 re$ene of the -o$ern#ent
//.Increase in GD3 -rowth rate
/..'o boost o$er all econo#!
#o& 'oes t(is &ill impact our country)s economy %
Positi*e impact!
Loan at c(eap rate
increase in borro&in+s
in*estment rises
business e,pansion
-ob creations
more income
boost o. economy.
/e+ati*e si+n!
Loan at c(eap rate
more borro&in+s
more e,penses
increase in 'eman'
i. supply not matc(
increase in prices o. commo'ities
possibilities o. in0ation
I1 /OT CO/TROLLE2.
'HAN:
;OU
doc_372246673.pptx
MISSION
Cut in REPO RATE by 50bps.
REPO RATE is the rate at which the central bank of a contr! len"s #one! to
co##ercial banks in the e$ent of an! shortfall of fn"s.
%URR&N' REPO RATE- (.)*+
CRR – ,+ nchan-e"
SLR – ./.*+
REVERSE REPO RATE – *.)*+ fall b! /+
Impact on commercial bans!
• S0I cts len"in- rate to 1.2+
• An"hra bank cts len"in- rate to 1.)*+
• Man! banks cts their ho#e loan interest rates
• Interest rates on loan for SM& -ets "ecreases
• 3N0 ho#e loan rate is 1.(4 an" no 5rocessin- fee
• An" #an! others bank are cttin- their rates on "i6erent t!5es of loan
"#$ %
/. 'o increase in in$est#ent c!cle
.. 'o "e$elo5 infrastrctre
2. 'o create cons#5tion abilit!
,. 'o low "own ho#e loans rate
*. 'o control realt! sector
(. 'o boost ato#obile an" a-ricltre sector
). 'o increase 7ow of #one!
8. 'o increase "e#an" of -oo"s
1. 'o increase 5er ca5ita inco#e
/4.Increase in ta9 re$ene of the -o$ern#ent
//.Increase in GD3 -rowth rate
/..'o boost o$er all econo#!
#o& 'oes t(is &ill impact our country)s economy %
Positi*e impact!
Loan at c(eap rate
increase in borro&in+s
in*estment rises
business e,pansion
-ob creations
more income
boost o. economy.
/e+ati*e si+n!
Loan at c(eap rate
more borro&in+s
more e,penses
increase in 'eman'
i. supply not matc(
increase in prices o. commo'ities
possibilities o. in0ation
I1 /OT CO/TROLLE2.
'HAN:
;OU
doc_372246673.pptx