Knowledge

(i) Cash Reserve Ratio (CRR)

It refers to the minimum amount of funds that a commercial bank has to maintain with the Reserve Bank of India, in the form of deposits. For example, suppose the total assets of a bank are worth Rs 200 crores and the minimum cash reserve ratio is 10%. Then the amount that the commercial bank has to maintain with RBI is Rs 20 crores. If this ratio rises to 20%, then the reserve with RBI increases to Rs 40 crores. Thus, less money will be left with the commercial bank for lending. This will eventually lead to considerable decrease in the money supply. On the contrary, a fall in CRR will lead to an increase in the money supply.

(ii) Statutory Liquidity Ratio (SLR)

SLR is concerned with maintaining the minimum reserve of assets with RBI, whereas the cash reserve ratio is concerned with maintaining cash balance (reserve) with RBI. So, SLR is defined as the minimum percentage of assets to be maintained in the form of either fixed or liquid assets with RBI. The flow of credit is reduced by increasing this liquidity ratio and vice-versa. In the previous example, this can be understood as rise in SLR will restrict the banks to pump money in the economy, thereby contributing towards decrease in money supply. The reverse case happens if there is a fall in SLR, as it increases the money supply in the economy.

1.) Repo Rate :

Whenever the banks have any shortage of funds they can borrow it form RBI. Repo rate is the rate at which commercial banks borrows rupees from RBI. A reduction in the repo rate will help banks to get money at cheaper rate. When the repo rate increases borrowing form RBI becomes more expensive.

2.) Reverse Repo Rate :

Reverse Repo rate is the rate at which RBI borrows money from commercial banks. Banks are always happy to lend money to RBI since their money is in the safe hands with a good interest. An increase in reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. One factor which
encourages an organization to enter into reverse repo is that it earns some extra income on its otherwise idle cash.

1)Marginal Standing Facility (MSF) :

MSF rate is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities.

2) Bank Rate :

The interest rate at which at central bank lends money to commercial banks. Often these loans are very short in duration. Managing the bank rate is a preferred method by which central banks can regulate the level of economic activity. Lower bank rates can help to expand the economy, when unemployment is high, by lowering
the cost of funds for borrowers. Conversely, higher bank rates help to reign in the economy, when inflation is higher than desired.

Commodity Price Quotation Lot Size PRICE PER TICK PL PER RS EXPIRY D DELIVERY TRADING ORDER QTY DELIVERY UNIT MAX ORDER SIZE CIRCUIT FILTER MEMBERS LIMIT Approx Margin
ALUMINI1KGS 10000.0501000LAST DAYBOTH OPTION1MT TONE10 MT DELIVEY 150 MT 4,6,92500005,380
ALUMINIUM1KGS 50000.0505000LAST DAYBOTH OPTION5 MT TONE10 MT DELIVEY 150 MT 4,6,925000027,063
BRCRUDEOIL1BBL 100LAST DAYBOTH OPTION 100.000 30,355
CARDAMOM1KGS 1000.1001015 THCOMPALSORY100 KG100 KG 50.000 16003,923
COPPER1KGS 10000.0501000LAST DAYBOTH OPTION1 MT9 MT 70.000 4.6.97000017,300
COPPERM1KGS 2500.050250LAST DAYBOTH OPTION250 KG9 MT 280.000 4.6.9700004,349
COTTON1BALES 2510.000250LAST DAYCOMPALSORY25 BALES100 BALES 48.000 7000020,475
CPO10KGS 10000.100100LAST DAYBOTH OPTION10 MT10 MT DELIVEY 20.000 5000028,820
CRUDEOIL1BBL 1001.00010019/20BOTH OPTION100 BARREL50000 BARRELS 100.000 4,6,9480000024,799
CRUDEOILM1BBL 101.0001019/20BOTH OPTION10 BARREL50000 BARRELS 10000.000 4.6.948000003,268
GOLD10GRMS 1001.0001005 TH DAYCOMPULSORY1 KG1 KG 10.000 3,6,950 MT153,220
GOLDGLOBAL10GRMS 205 TH DAYCOMPULSORY20 50.000 3,6,931,348
GOLDM10GRMS 101.000105 TH DAYCOMPULSORY100 GRM100 GRM 100.000 3,6,914,820
GOLDPETAL1GRMS 11.00015 TH DAYCOMPULSORY8 GRM8 GRM 10000.000 3,6,9148
GOLDPTLDEL1GRMS 15 TH DAYCOMPULSORY 148
KAPAS20KGS 200LAST DAYCOMPALSORY 7,800
LEAD1KGS 50000.0505000LAST DAYBOTH OPTION5 MT TONE10 MT DELIVEY 20.000 4,6,935000 MT30,675
LEADMINI1KGS 10000.0501000LAST DAYBOTH OPTION1 MT10 MT DELIVERY 100.000 4,6,935000 MT6,643
MENTHAOIL1KGS 3600.10036LAST DAYCOMPALSORY360 KG360 KG 50.000 500016,380
NATURALGAS1mmBtu 12500.100125025/26BOTH OPTION1250 MMBTU10000 MMBTU 16.000 4,6,960000000 MMBTU11,325
NICKEL1KGS 2500.100250LAST DAYBOTH OPTION250 KG3 MT 96.000 4,6,910000 MT13,289
NICKELM1KGS 1000.100100LAST DAYBOTH OPTION100 KG3 MT 240.000 4,6,910000 MT4,688
SILVER1KGS 301.000305 TH DAYCOMPALSORY30 KG30 KG 20.000 4,6,9,31000 MT67,595
SILVER10001KGS 11.0001LAST DAYCOMPALSORY1 KG1 KG 600.000 4,6,9,31000 MT2,000
SILVERM1KGS 51.0005LAST DAYBOTH OPTION5 KG30 KG 120.000 4,6,9,31000 MT10,061
SILVERMIC1KGS 11.0001LAST DAYBOTH OPTION1 KG30 KG 600.000 4,6,9,31000 MT1,978
ZINC1KGS 50000.0505000LAST DAYBOTH OPTION5 MT TONE10 MT TONE 20.000 4,6,970000 MT36,587
ZINCMINI1KGS 10000.0501000LAST DAYBOTH OPTION1 MT10 MT 100.000 4,6,970000 MT7,473

Free Trial Form

Looking for a First-Class Investment Advisor

Show Buttons
Hide Buttons