VARDHAN KALE'S BLOG

What is CRR? Reverse Repo Rate & Repo Rate ?

2010-07-27T20:38:00.002+05:30

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.

Commercial banks are required to maintain with the RBI an average cash balance, the amount of which shall not be less than 3% of the total of the Net Demand and Time Liabilities (NDTL), on a fortnightly basis and the RBI is empowered to increase the rate of CRR to such higher rate not exceeding 20% of the NDTL.

Reverse Repo rate is the rate at which the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe hands with a good interest.

An increase in reverse repo rate can prompt banks to park more funds with the RBI to earn higher returns on idle cash. It is also a tool which can be used by the RBI to drain excess money out of the banking system.

The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary policy. Whenever banks have any shortage of funds they can borrow from the RBI.

A reduction in the repo rate helps banks get money at a cheaper rate and vice versa. The repo rate in India is similar to the discount rate in the US.

The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary policy. Whenever banks have any shortage of funds they can borrow from the RBI.

A reduction in the repo rate helps banks get money at a cheaper rate and vice versa. The repo rate in India is similar to the discount rate in the US.

Lifes lessons

2006-08-25T16:51:00.001+05:30

1. Shut up. Listen.
2. Your absence won't make any difference. Your presence can.
3. The future does not exist.
4. Increase your capacity to love.
5. Its not the work but the aversion for it that causes stress.
6. Your mind is not a dustbin.
7. The more you learn the more you realize that you don't know anything.
8. Don't underestimate the power of humility.
9. Accept yourself.
10. Let go.
11. Smile. Hold hands.
12. Observe your breath.
13. You will have to carry the burdon of your possessions.
14. The characteristic of happiness is a peaceful mind, contentment & a feeling of fulfillment .
15. The secret of lasting happiness is state of mind which cannot be ruffled easily.
16. Embrace life.
17. Help others.
18. Exercise regullarly.
19. Read philosphy and avoid talking about it with everyone.
20. Let people know that you miss them when you do.
21. Be nice instead of being correct.
22. Dont presume that you will live to see the next sunrise.
23. When you feel love for others express it.
24. Morderation is the key.
25. Take time out to do nothing.
26. Choose your company.
27. I'f there any moment to live , its now.
28. Precausion is better than assumption.
29. Choose love over ego.
30. Sing. Dance.
31. KISS. ( Keep It Simple & Sweet )
32. Read. Listen. Observe.
33. Dont miss breakfasts.

to be cont...

Relationships Matter

2006-06-06T11:44:00.001+05:30

Quotes from the book : Never eat alone.

We human beings are social beings. We come in the
world as the result of others action. We survive here
on dependence on others. Wether we like it or not ,
there is hardly a moment of our lives when we do not
benefit from others activities.For this reason , it is
hardly surprising that most of our happiness arises in
the context of our relationship with others.

There is no such thing as a self made man. We are made
up of thousands of others. Everyone who has done a
kind deed for us or spoken one word of encouragement
to us has entered into the makeup of our character and of
our thoughts, as well as our success.

Its so important to learn to contribute, to give your time ,
money and expertise to your growing community of friends.
It is so important to build a community of those you
love and who love you. Call it a clan , call it a tribe
, call it a network , call it a family , whatever you
call it, whoever you are , you need one.

The more people you help the more help you'll have and
the more help you'll have helping others. This is not
an era of cut throat competition as it is popularly
perceived but an era of collaboration and establishing
synergies. Today we need each other more than ever.

If our interactions are ruled by generosity , our
rewards will follow suit. Our relationships with
others is are our finest expressions of who we are and what
we have to offer. Nothing else compares.

Be Calm .... Practical Vedanta - by Swami Vivekananda

2004-05-28T13:53:00.001+05:30

Excerpt from the second volume of "The complete works of Sawmi Vivekananda"

"In various upnishads we find that this vedanta philosophy is not the outcome of meditation in the forest only, but that the very best pearls of it were thought out by brains which were busiest in the everyday affairs of life.

Bhagwat Gita - most of you perhaps have read it, it is the best commentry we have on the vedanta philosophy.Gita is intense activity, but in the midst of it. eternal calmness.

Inactivity dosent become activity when its combined with passion. Real activity ,which is the goal of vedanta is combined with eternal calmness, the calmness which cannot be ruffeled,the balance of mind which is never disturbed,whatever happens. And we know from our experience in life that that is the best attitude for work.

The less passion there is the better we work. The calmer we are,the better for us , and the more the amount of work we can do. When we let loose our feelings, we waste so much energy,shatter our nerves, disturb our mind and accomplish very little work. The energy which out to have gone out as work is spent as mere feeling, which counts for nothing. It is only when the mind is very calm and collected that the whole of its energy is spent in doing good work.

And if you read the lives of great workers which the world has produced, you will find that they were wonderfully calm men. Nothing, as it were, could throw them off their balance. That is why the man who becomes angry never does a great amount of work, and the man whom nothing can make angry accomplishes so much. The man who gives way to anger,or hatred or any other passion, cannot work; he only breaks himself into pieces, and does nothing practical.

It is the calm , forgiving , equable well-balanced mind that does the greatest amount of work."