Core Banking & Financial Awareness Notes
1. RBI Monetary Policy Instruments
- Repo Rate: Rate at which commercial banks borrow short-term funds from RBI against government securities.
- Reverse Repo Rate: Rate at which RBI borrows funds from commercial banks.
- SDF (Standing Deposit Facility): Floor rate of the policy corridor without collateral requirement.
- MSF (Marginal Standing Facility): Emergency overnight borrowing facility for commercial banks above repo rate.
- CRR (Cash Reserve Ratio): Percentage of Net Demand and Time Liabilities (NDTL) banks must hold in cash with RBI.
- SLR (Statutory Liquidity Ratio): Percentage of NDTL banks must maintain in liquid assets (Gold, G-Secs).
2. Asset Classification (NPA Norms)
- Standard Assets: Regular repayment without default.
- Sub-Standard Assets: NPA for a period $\le 12$ months.
- Doubtful Assets: Remains sub-standard for $> 12$ months.
- Loss Assets: Uncollectible, identified by bank or RBI auditors.