Thursday, 9 February 2017


Current RBI Monetary Policy Rates

Current RBI Monetary Policy Rates

( As per RBI’s Sixth bi-monthly Monetary Policy Statement for 2016-17 announced on 8th February 2017 )

Repo Rate 6.25%
Reverse Repo Rate 5.75%
Bank Rate 6.75%
Marginal Standing Facility (MSF) 6.75%
Cash Reserve Ratio (CRR) 4.00%
Statutory Liquidity Ratio (SLR) 20.50%


Repo Rate @ 6.25% has been has been unchanged since 4th October 2016
Consequently, the Reverse Repo Rate @ 5.75 %, the Marginal Standing Facility (MSF) rate @ 6.75% and the Bank Rate @ 6.75 % remained unchanged.
Cash Reserve Rate (CRR) @ 4.00% has been unchanged since 9th February 2013
Statutory Liquidity Ratio (SLR) was reduced to 20.50% from 1st January 2017
The next meeting of RBI’s Monetary Policy Committee (MPC) is scheduled on 5th and 6th April 2017

Key Facts

RBI Headquarters: Mumbai
Current RBI Governor: Urjit Patel

Important terms:

Repo Rate : Repo rateis the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by RBI to control inflation. In the event of inflation, RBI increases repo rate as this acts as a disincentive for commercial banks to borrow from RBI. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.

Reverse Repo Rate : Reverse repo rateis the rate at which the RBI borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.  An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with the RBI, thereby decreasing the supply of money in the market.

Bank Rate : Bank rate, also referred to as the discount rate, is the rate of interest which RBI charges on the loans and advances to a commercial bank. Bank rates influence lending rates of commercial banks. Higher bank rate will translate to higher lending rates by the banks. In order to curb liquidity, the RBI can resort to raising the bank rate and vice versa.

Marginal Standing Facility : Marginal standing facility is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short. The MSF rate is pegged 100 basis points or a percentage point above the repo rate. Under MSF, banks can borrow funds up to one percentage of their net demand and time liabilities (NDTL).

Credit Reserve Ratio : Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR ensures that banks do not run out of cash to meet the payment demands of their depositors. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.

Statutory Liquidity Ratio : Apart from Cash Reserve Ratio (CRR), banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities. Treasury bills, dated securities issued under market borrowing programme and market stabilisation schemes (MSS) etc. also form part of the SLR. Banks have to report to the RBI every alternate Friday their SLR maintenance, and pay penalties for failing to maintain SLR as mandated.


In each of the following questions, a word has been used in sentences in four different ways. Choose the option corresponding to the sentence in which the usage of the word is INCORRECT or INAPPROPRIATE.
  1. Strong
    1) she cut through the water with her strong arms
    2) a strong fortress surrounded by a moat
    3) cotton is strong, hard-wearing, and easy to handle
    4) she was recovering from flu, and was very strong
    5) None of these
  2. Relinquish
    1) he relinquished his managerial role to become chief executive
    2) he offered to relinquish his post as acting President
    3) he relinquished control of the company to his sons
    4) she relinquished her grip on the door
    5) None of these
  3. String
    1) lights were strung across the promenade
    2) wire mesh was strung from one catwalk to the other
    3) unwieldy packs tied up with string
    4) the harp had been newly strung
    5) None of these
  4. Trouble
    1) it’s the least you can do after all the trouble you’ve caused
    2) she ought not to be spilling out her troubles to you
    3) there was crowd trouble before and during the match
    4) he found trouble in living a simple life in the country
    5) None of these
  5. Aligned
    1) the desks are aligned in straight rows facing forwards
    2) desks are typically aligned in straight rows facing forwards
    3) the curriculum is alinged towards the practical subjects
    4) newspapers usually align themselves with certain political parties
    5) None of these
  6. Anxiety
    1) passing cars are the only noise that disturbs the anxiety of rural life
    2) he felt a surge of anxiety
    3) his anxiety grew as his messages were all left unanswered
    4) the housekeeper’s eager anxiety to please
    5) None of these
  7. Applaud
    1) the crowd whistled and applauded
    2) the audience applauded
    3) Jill applauded the decision
    4) police have applauded members of the public whose information has led to a series of arrests
    5) None of these
  8. Close
    1) not close from the palace a fine garden was built
    2) the town is located close to Manchester’s airport
    3) the family history of cancer in close relatives
    4) not all elderly people have close relatives they might live with
    5) None of these
  9. Assent
    1) a loud murmur of assent
    2) there were murmurs of assent from the opposition benches
    3) the Prime Minister assented to the change
    4) the Prime Minister assented to the change
    5) None of these
  10. Request
    1) Charlotte insisted, at Ursula’s request, on driving him to the station
    2) he received the information he had requested
    3) we received several urgent requests for assistance
    4) he was not going to take requests from a mere administrator
    5) None of these

1.Answer – 4)
Explanation : Replace “strong” with “weak”
In the other sentences, the word ‘strong’ is used correctly.
Answer – 5)

2.Explanation : None of the above
The uses of the word are correct in the all given sentences.

3.Answer – 4)
Explanation : Replace :string” with “individual”
In the other sentences, the word ‘String’ is used correctly.

4.Answer – 4)
Explanation : Replace “trouble” with “contentment”
In the other sentences, the word ‘Trouble’ is used correctly.

5.Answer – 3)
Explanation : Replace “aligned” with “skewed”
In the other sentences, the word ‘Aligned’ is used correctly.

6.Answer – 1)
Explanation : Replace “anxiety” with “tranquility”
In the other sentences, the word ‘Anxiety’ is used correctly.

7.Answer – 5)
Explanation : None of these.
All sentences are correct.

8.Answer – 1)
Explanation :Replace “close” with “far”
In the other sentences, the word ‘close’ is used correctly.

9.Answer – 2)
Explanation : Replace “accent” with “dissent”
there were murmurs of dissent from the opposition benches

10.Answer – 4)
Explanation : Replace “request” with “order”
he was not going to take orders from a mere administrator


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Directions (1-5): Find out the wrong number in the series: 
Q1. 32, 36, 41, 61, 86, 122, 171, 235    
(a) 41
(b) 61
(c) 86
(d) 122
(e) 171 

Q2. 3, 4, 9, 22.5, 67.5, 202.5, 810 
(a) 4
(b) 9
(c) 22.5
(d) 67.5
(e) 202.5 

Q3. 1, 2, 8, 33, 148, 760, 4626 
(a) 2
(b) 8
(c) 33
(d) 148
(e) 760 

Q4. 3, 8, 18, 46, 100, 210, 432 
(a) 8
(b) 18
(c) 46
(d) 100
(e) 210

Q5. 789, 645, 545, 481, 440, 429, 425
(a) 645
(b) 545
(c) 481
(d) 440
(e) 429 

Directions (6-10): The circle-graph given here shows the spending of a country on various sports during a particular year. Study the graph carefully and answer the questions given below it. 

Q6. What percent of the total spending is spent to tennis?  
(a) 12 (1/2)%
(b) 22 (1/2)%
(c) 25%
(d) 45%
(e) None of these

Q7. How much percent more is spent on Hockey than that on Golf?  
(a) 27%
(b) 35%
(c) 37.5%
(d) 75%
(e) None of these

Q8. How much percent less is spent on Football than that on Cricket? 
(a) 22 (2/9)%
(b) 27%
(c) 33 (1/3)%
(d) 37 (1/2)%
(e) None of these

Q9. If the total amount spent on sports during the year was Rs. 2 crores, the amount spent, on Cricket and Hockey together was:   
(a) Rs. 8,00,000
(b) Rs. 80,00,000
(c) Rs. 1,20,00,000
(d) Rs. 1,60,00,000 
(e) None of these
Q10. If the total amount spent on sports during the year be Rs. 1,80,00,000, the amount spent on Basketball exceeds that on Tennis by:  
(a) Rs. 2,50,000
(b) Rs. 3,60,000
(c) Rs. 3,75,000
(d) Rs. 4,10,000
(e) None of thes



Bank of Baroda tentative CBT(Computer Based Test) Dates: 15-2-2017 to 
28-2-2017 Admit Card released

All the best



I. Study the following information carefully to answer the given questions
Eight People – A, B, C, D, E, F, and G live in ten different floors of a building (but not necessarily in the same order). Two of the floors in the building is vacantThe lowermost floor of the building is numbered one, the one above that is numbered two, and so on till the topmost floor is numbered ten. Each one of them also likes different apps, namely WhatsApp, Wechat, IMO, Hike, Line, Viber, Google Allo and Telegram(but not necessarily in the same order).
The number of people living below F is same as the number of people living between F and H. F lives an odd numbered floor above the floor numbered four. The top most floor is vacant. Only one person lives between B and the one who likes Hike. Only three floors between D and the one who likes Line. The number of floors between the one who likes Google Allo and the one who likes Hike is two. The one who likes Viber lives immediately above G. Only three floors between G and A. The one who likes TELEGRAM lives immediately above the one who likes Whatsapp. C lives one of the odd numbered floors above the one who likes Line. The number of floors between F and the one who likes WECHAT is only one. Only one person lives between the one who likes TELEGRAM and the vacant floor. Only two people live between C and vacant floor. The number of floors between two vacant floors is five. The one who likes TELEGRAM and WECHAT not live in the floors numbered 8 and 7 respectively. The one who likes Hike app lives immediately below the floor in which C lives.