1. CRR : It stands for Cash Reserve Ratio. It is the amount of funds that the banks have to keep with Reserve bank of India(RBI). Whenever RBI increases this percentage the available amount of money with the banks come down. This method drains out the excessive money from the banks.
2. Repo rate is the rate at which the RBI borrows from the banks, while reverse repo rate is the interest rate earned by a bank for lending money to the RBI in exchange for Government securities.
2. Repo rate is the rate at which the RBI borrows from the banks, while reverse repo rate is the interest rate earned by a bank for lending money to the RBI in exchange for Government securities.
