RBI CRR, SLR, Repo Rate 2026 — Current Rates & How They Work
Latest RBI monetary policy rates for June 2026: Repo Rate, Reverse Repo, CRR, SLR, MSF, Bank Rate. Explanation of each rate with exam-oriented comparison table.
RBI policy rates are guaranteed questions in every JAIIB paper — IE&IFS and PPB both test them heavily. Here are the latest rates as of the most recent MPC meeting, along with clear explanations of what each rate does.
📌 Current RBI Policy Rates (June 2026)
6.25%
Repo Rate
3.35%
Reverse Repo
4.0%
CRR
18%
SLR
6.50%
MSF Rate
6.50%
Bank Rate
* Last updated after RBI MPC meeting April 2025. Verify current rates on rbi.org.in before your exam.
What Each Rate Means (Simple Explanation)
Repo Rate (6.25%)
What: The rate at which RBI lends short-term money to commercial banks against government securities.
Impact: When Repo Rate goes down → banks can borrow cheaper → loan EMIs decrease.
Remember: Repo = Repurchase Agreement. Banks sell securities to RBI and buy them back (repurchase) later.
Reverse Repo Rate (3.35%)
What: The rate at which RBI borrows money from commercial banks (banks park excess funds with RBI).
Impact: Higher reverse repo → banks prefer parking money with RBI → less lending → reduces money supply.
Remember: Always lower than Repo Rate. The gap is the LAF (Liquidity Adjustment Facility) corridor.
CRR — Cash Reserve Ratio (4.0%)
What: Percentage of NDTL (Net Demand and Time Liabilities) that banks must keep as cash with RBI. No interest earned on CRR.
Impact: Higher CRR → less money available for lending → contracts money supply.
Key fact: CRR is maintained under Section 42 of the RBI Act 1934. Range: 3% to 15%.
SLR — Statutory Liquidity Ratio (18%)
What: Percentage of NDTL that banks must maintain in liquid assets (cash, gold, government securities).
Impact: Higher SLR → banks invest more in government securities → less credit to private sector.
Key fact: SLR is maintained under Section 24 of the Banking Regulation Act 1949. Range: 0% to 40%.
MSF — Marginal Standing Facility (6.50%)
What: Emergency borrowing window where banks can borrow from RBI above the repo rate (even by dipping into SLR).
Remember: MSF = Repo Rate + 0.25% (typically). It's the ceiling of the LAF corridor.
Bank Rate (6.50%)
What: Rate at which RBI lends long-term funds to banks without any collateral.
Note: Since 2012, Bank Rate is aligned with MSF Rate. Used mainly for penal interest calculations.
Common Exam Questions on Rates
🎯 Frequently Asked in JAIIB
- • "Under which Act/Section is CRR maintained?" → Section 42, RBI Act 1934
- • "Under which Act/Section is SLR maintained?" → Section 24, BR Act 1949
- • "Which rate forms the floor of LAF corridor?" → Reverse Repo (or SDF now)
- • "Which rate forms the ceiling of LAF corridor?" → MSF Rate
- • "CRR earns interest — True or False?" → FALSE (no interest on CRR)
- • "SLR can be maintained in which forms?" → Cash, Gold, Government Securities
- • "Who decides Repo Rate?" → RBI Monetary Policy Committee (MPC), 6 members
CRR vs SLR — Key Differences
| Feature | CRR | SLR |
|---|---|---|
| Maintained in | Cash only (with RBI) | Cash + Gold + G-Secs (with bank itself) |
| Interest earned | No | Yes (on G-Secs) |
| Act/Section | RBI Act, Section 42 | BR Act 1949, Section 24 |
| Range | 3% to 15% | 0% to 40% |
| Purpose | Control money supply | Ensure bank solvency + fund govt |
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