RR-CS: Repo Rate, Reverse Repo, CRR, SLR — RBI's four main monetary policy tools. Repo = RBI lends TO banks. Reverse Repo = banks deposit WITH RBI.
Banking Awareness Tricks
SBI POIBPS POSBI ClerkRBI Grade B
Items to Memorize
- RBI functions and departments
- Types of bank accounts (Savings, Current, Fixed, Recurring)
- Monetary policy tools (Repo, Reverse Repo, CRR, SLR)
- NABARD, SIDBI, EXIM Bank roles
- Banking acronyms (NEFT, RTGS, IMPS, UPI)
- Basel norms (I, II, III)
- Financial inclusion schemes
- Insurance and investment terms
Mnemonic Tricks
How It Maps
| Cue | Maps To |
|---|---|
| Repo Rate | Rate at which RBI lends to commercial banks (increases = tightening) |
| Reverse Repo | Rate at which banks deposit excess funds with RBI (always less than Repo) |
| CRR (Cash Reserve Ratio) | % of deposits banks must keep with RBI as CASH (no interest earned) |
| SLR (Statutory Liquidity Ratio) | % of deposits kept as liquid assets (gold, govt securities — earns interest) |
Why It Sticks
Monetary policy questions appear in every banking exam. RR-CS gives you the four tools and their relationships instantly.
NEFT-RTGS-IMPS by speed and limit: NEFT = batch (slow, no min), RTGS = real-time (fast, min ₹2 lakh), IMPS = instant (24x7, up to ₹5 lakh).
How It Maps
| Cue | Maps To |
|---|---|
| NEFT | National Electronic Funds Transfer — batch processing, hourly settlements, no minimum |
| RTGS | Real Time Gross Settlement — instant for large amounts (min ₹2 lakh) |
| IMPS | Immediate Payment Service — instant 24x7, up to ₹5 lakh |
| UPI | Unified Payments Interface — built on IMPS, uses virtual payment address |
Why It Sticks
Transfer system differences are asked in 2-3 questions per exam. Speed + limit is the key differentiator.
Frequently Asked Questions
What's the difference between CRR and SLR?
CRR is cash kept with RBI (no interest). SLR is liquid assets (gold, govt bonds) kept by bank itself (earns interest). Both reduce lendable funds.
Is banking awareness only in Mains?
General Awareness (including banking) appears only in SBI PO Mains, not Prelims.