RBI REDUCED SLR, ALL OTHER RATES UNCHANGED

RBI reduced SLR(STATUTORY LIQUIDITY RATIO) from 25% to 24% ,from Dec. 18, 2010 to Jan. 28, 2011. The RBI also said that it will conduct open market operations (OM) of up to Rs 480bn in the next one month to ease the current liquidity crunch in the banking system.The RBI's key lending rate, or the repo rate, currently stand at 6.25% while the key borrowing rate, or the reverse repo rate, is at 5.25. The CRR currently stands at 6%,all unchanged as per experts predictions.

NOTE:SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit.