Latest Policy Rates (Bank rate,CRR,SLR,Repo rate,Reverse repo rate,MSF) in Indian Banking

Bank Rate
5.40% 
Cash Reserve Ratio 
 (CRR) 
4.00% 

Statutory Liquidity Ratio (SLR) 
18.50%
Repo Rate under 
LAF
5.15% 
Reverse Repo Rate under LAF

4.90% 

Marginal Standing Facility (MSF)
5.40%  
                                                          Updated in Oct,2019

To control inflation and the growth, RBI uses certain tools like CASH RESERVE RATIO, STATUTORY LIQUIDITY RATIO, REPO RATE, REVERSE REPO RATE etc.,
What is CRR (Cash Reserve Ratio)?
It is the ratio of Deposits which banks have to keep with RBI. Under CRR a certain percentage of the total bank deposits has to be kept in the current account with RBI. Banks don’t earn anything on that.
Banks will not have access to this amount. They cannot use this money for any of their economic or commercial activities. Banks can’t lend this portion of money to corporate or individual borrowers.
Example  You deposit say Rs 1000 in your bank. Then Bank receives Rs 1000 and has to put some percentage of it with RBI. If the prevailing CRR is 6% then they will have to deposit Rs 60 with RBI and they are left with Rs 940. Your bank can not use this Rs 60 for its commercial activities like lending or investment purpose. This Rs60 is deposited in current account with RBI.
The current CRR is 4%. If RBI cuts CRR in its next monetary policy review which is scheduled on 2nd, December then it means banks will be left with more money to lend or to invest. So, more money can be released into the economy which may spur economic growth.
What is Statutory Liquidity Ratio (SLR)?
Besides CRR, Banks have to invest certain percentage of their deposits in specified financial securities like Central Government or State Government securities. This percentage is known as SLR.
This money is predominantly invested in government securities which mean the banks can earn some amount as ‘interest’ on these investments as against CRR where they do not earn anything.
Example  You deposit say Rs 1000 in your bank. Then Bank receives Rs 1000 and has to put some percentage of it with RBI as SLR. If the prevailing SLR is 20% then they will have to invest Rs 200 in Government securities.
So to meet both CRR and SLR requirements, bank have to earmark Rs 260 (Rs 60 + Rs 200).
What is Repo Rate?
When we need money, we take loans from banks. And banks charge certain interest rate on these loans. This is called as cost of credit (the rate at which we borrow the money).
Similarly, when banks need money they approach RBI. The rate at which banks borrow money from the RBI by selling their surplus government securities to the central bank (RBI) is known as “Repo Rate.” Repo rate is short form of Repurchase Rate. Generally, these loans are for short durations (up to 2 weeks).
It simply means the rate at which RBI lends money to commercial banks against the pledge of government securities whenever the banks are in need of funds to meet their day-to-day obligations.
Banks enter into an agreement with the RBI to repurchase the same pledged government securities at a future date at a pre-determined price. RBI manages this repo rate which is the cost of credit for the bank.

Example – If repo rate is 5% , and bank takes loan of Rs 1000 from RBI , they will pay interest of Rs 50 to RBI. So, higher the repo rate higher the cost of short-term money and vice verse. Higher repo rate may slowdown the growth of the economy. If the repo rate is low then banks can charge lower interest rates on the loans taken by us.

If RBI cuts Repo rates in its next monetary policy review which is scheduled on 2nd, December then it means the cost of short-term credit can come down.
So whenever the repo rate is cut, can we expect that both the deposit rates and lending rates of banks to come down to some extent?
This may or may not happen every time. The lending rate of banks goes down to the existing bank borrowers only when the banks reduce their base rates, as all lending rates of banks are linked to the base rate of every bank. In the absence of a cut in the base rate, the repo rate cut does not get automatically transmitted to the individual bank customers. This is the reason why you might have observed that your loan EMIs remain same even after RBI lowers the repo rates.
Banks check various other factors (like credit to deposit ratios etc.,) before reducing the Base rates.
( Base Rate is the minimum rate below which Banks are not permitted to lend)
What is Reverse Repo Rate?
Reverse repo rate is the rate of interest offered by RBI, when banks deposit their surplus funds with the RBI for short periods. When banks have surplus funds but have no lending (or) investment options, they deposit such funds with RBI. Banks earn interest on such funds.
Impact of Repo Rate cut or CRR cut :
Currently crude oil (petrol/fuel) prices, commodity prices and inflation have eased.  Against this backdrop, there is a high expectation of RATE CUT this time. So, if there is a rate cut what is the general impact on the economy?
Hope you liked this post. Do track the RBI’s next Monetary Policy review. 
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Key points from RBI policy meets


Reserve Bank of India (RBI) is currently on a rate cutting spree as the central bank has reduced the repo rate -- the rate at which it lends to banks -- for the fifth time in a row. After this reduction of 25 basis points (bps), which overall translates into 135 bps or 1.35 percentage points this year, the repo rate now stands at 5.15 per cent.


Here's are the key takeaways from the monetary policy committee (MPC) meet:


Rate cut may bring cheer among borrowers:

When the RBI cuts rates, banks are expected to pass on the benefit to consumers and reduce interest rates on home, auto, personal or other loans which may result in lower EMIs (equated monthly instalments).

As the RBI has compelled banks to align all their retail loans to external benchmarks, and a majority of lenders have adopted the repo rate as the benchmark, the cut will likely bring cheer to borrowers.


Any scope for another rate cut?

The central bank has maintained its "accommodative" stance. "The Reserve Bank will continue the 'accommodative' stance as long as it is required to revive the growth," RBI governor Das said .

This leaves borrowers with a hope that that the key lending rate may fall further.


Shaktikanta Das on PMC Bank crisis:

"As soon as this issue came to the central bank's notice, the RBI has acted very swiftly. One incident should not be used to generalise the state of all cooperative banks. Banking system sound, stable and there's no reason to panic," Das stated on Punjab and Maharashtra Cooperative (PMC) Bank crisis.


RBI governor on 'single-use plastic ban':

Just seconds before the MPC media briefing was about to get over, the RBI governor was congratulated for opting "plastic free folder and water bottle". To which the governor smiled and replied: "We've decided and we've in fact issued a circular internally for doing away with single-use plastic."


Fall in economic growth projection:

The Reserve Bank sharply cut its economic growth projection for this fiscal to 6.1 per cent from 6.9 per cent earlier, but expressed hope that the growth will recover in the second half of 2019-20.

The central bank's estimates come in the wake of GDP growth sliding to a six-year low of 5 per cent in the June quarter, on a massive slowdown in consumption and private sector investments.


Micro-lenders' borrowers:

On the regulation and supervision front, the RBI decided to increase the household limits for micro-lenders' borrowers, and also raise the cap to Rs 1.25 lakh per eligible borrower from the previous Rs 1 lakh.

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How Many Digits in Account Number of Banks in India


Every customer of a bank is assigned a unique account number, and that account number will be used in every banking operation related to that person. An account number is a special series of digits and, often, letters and other characters that describe the account owner and give access to that account. You can find your account number at the bottom of your paper check.

An account number may vary from 9 digits to 18 digits, and it depends on the bank how many numbers should be included in an account number. An account number contains a pure numeric pattern, but some foreign banks use the alpha-numeric combination in the account number.

Two users cannot have the same account number in the same bank. As the cases of banking fraud are increasing day by day, banks are working on making every account number different from users of other banks also.

The reports of Reserve Bank of India(RBI) states that there are only 20 banks in India which has a serial running number and rest of the banks has some indicated characteristic included in it.

The added characteristics in the bank that are embedded are account type, account status, product code, bank code, branch code, check digits, year of opening, etc. 40 out of 78 banks do not have a check digit as part of the form of their account number. Many banks (67 out of 78) have implemented branch code as part of the specification of the account number.

Many banks use company code as a part of the specification of the account number. It varies from bank to bank on how the implementation procedure is planned by the bank and depending on that total number of characters varies in the account number.



SR. NO.

NAME OF BANK

ACCOUNT NUMBER DIGITS

1

ANDHRA BANK(Now UBI)

15

2

ANDHRA PRADESH GRAMEENA VIKAS BANK

11

3

ALLAHABAD BANK(Now Indian Bank)

11

4

ASSAM GRAMIN VIKASH BANK

13

5

ARYAVART BANK

15

6

AU SMALL FINANCE BANK

16

7

AXIS BANK

15

8

BANDHAN BANK

14

9

BANK OF BARODA(BoB)

14

10

BANK OF INDIA(BoI)

15

11

BANK OF MAHARASHTRA(BoM)

11

12

BARODA RAJASTHAN KSHETRIYA GRAMIN BANK

14

13

BARODA UP GRAMIN BANK

11

14

BANGIYA GRAMIN VIKASH BANK

11

15

CENTRAL BANK OF INDIA

10

16

CANARA BANK

13

17

CATHOLIC SYRIAN BANK

18

18

CITI BANK

10

19

CITY UNION BANK

15

20

CORPORATION BANK(Now UBI)

8

21

DCB BANK

14

22

DENA BANK (Now BoB)

12

23

DHANALAKSHMI BANK

16

24

EQUITAS SMALL FINANCE BANK

12

25

FEDERAL BANK

14

26

HDFC BANK

13 or 14

27

HSBC BANK

12

28

ICICI BANK

12

29

IDFC FIRST BANK

11

30

INDIAN BANK

9

31

INDIAN OVERSEAS BANK(IOB)

15

32

INDUSIND BANK

13

33

IDBI BANK

13 or 14 or 15 or 16

34

JAMMU AND KASHMIR BANK (J&K)

16

35

KARNATAKA BANK

16

36

KARUR VYSYA BANK

16

37

KARNATAKA VIKAS GRAMEENA BANK

16

38

KERALA GRAMIN BANK

14

39

KOTAK MAHINDRA BANK

14

40

LAKSHMI VILAS BANK

16

41

NAINITAL BANK

16

42

MADHYANCHAL GRAMIN BANK

10

43

ORIENTAL BANK OF COMMERCE(Now PNB)

14

44

ODISHA GRAMYA BANK

11

45

PUNJAB NATIONAL BANK(PNB)

16

46

PUNJAB & SIND BANK

14

47

Prathama UP Gramin Bank

14

48

RBL BANK

12

49

RAJASTHAN MARUDHARA GRAMIN BANK

12

50

STANDARD CHARTERED BANK

11

51

STATE BANK OF BIKANER AND JAIPUR(Now SBI)

11

52

SAPTAGIRI GRAMIN BANK

11

53

SARVA HARYANA GRAMIN BANK

14

54

STATE BANK OF INDIA(SBI)

11

55

STATE BANK OF HYDERABAD(Now SBI)

11

56

STATE BANK OF TRAVANCORE (Now SBI)

11

57

SOUTH INDIAN BANK

16

58

SYNDICATE BANK (Now CANARA BANK)

14

59

TAMILNADU MERCANTILE BANK

6 to 15

60

UNION BANK OF INDIA(UBI)

15

61

UNITED BANK OF INDIA (Now PNB)

13

62

UCO BANK

14

63

UTTAR BIHAR GRAMIN BANK

16

64

UTKAL GRAMEEN BANK

12

65

VIJAYA BANK(Now BoB)

15

66

YES BANK

15



* Comment us or contact us to share number of bank account digits which is not mentioned here.
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