New Bank Rates

RBI increased the bank rates due to inflation.The increase is as follows,The Repo Rate increased to 5%, Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.The present rate is 3.5%
The Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.The present rate is 5.75%