1. CRR Stands for Cash Reserve Ratio A CRR is the % of bank Reserve to Deposit and Notes, CRR is the amount of Funds that the banks have to keep with RBI If RBI decides to increase the % of this, the available amount with the banks comes down RBI increases CRR rate to pull out the excessive money from the banks It is also Known as Cash Asset Ratio or Liquidity Ratio CRR is used as tool in Monetary Policy, which influence Country’s Economy, Borrowing and Interest Rates across the country

2. SLR stands for Statutory Liquidity Reserve/Ratio Statutory Liquidity Reserve/Ratio is percentage of deposits the bank has to maintain in form of gold, cash or other approved securities. It regulates he credit growth in India. Every financial institute is required to maintain a Statutory Liquidity reserve (SLR) of 25% (including CRR) on all its liabilities.

3. PLR stands for Prime Lending Rate. The interest rate the commercial banks charge their best, most credit worthy customers. It is minimum lending rate at which credit line is offered to prime borrowers.

4. REPO RATE When the funds are having Shortages of Funds, they borrow it from RBI. Repo Rate is the Rate at which banks money from RBI. Low Repo Rate means banks are getting cheaper rate loans from RBI. When Repo Rate increases borrowing from RBI becomes more expensive.

5. REVERSE REPO RATE Reverse Repo Rate is the rate at which RBI borrows money from banks. Banks lend the money to RBI for safeguarding the money with good amount of interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of the banking system.

6. SUB PRIME LENDING Sub Prime Lending is lending at a higher rate than the Prime Rate. Type of loan offered at Rate above Prime to individuals who do not qualify from Prime Lending Rate loans. A subprime loan is offered at a rate higher than Business loans due to the perceived increased risk. Subprime lending includes a variety of credit instruments, including subprime mortgages, subprime car loans, and subprime credit cards etc.