https://www.desidime.com/discussions/repo-rate-vs-fd-discussion?page=1#post_9095176
@rogerthat tagging the only banker i know on DD to share his thoughts.
I was hoping to get different insights on this topic.
Repo Rate vs FD - Discussion
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With the latest hike in Repo rate by the MPC, now RBI would lend banks at 6.5%.
Is there a limit on how much the banks can borrow from RBI, if there is a limit, how is that calculated, and available publicly?
Why would banks give 7-9%, when they can borrow at lower rate from RBI.
Banks attracting customers for CASA makes sense, as interest for CASA would be at a lot lower than 6.5% for many banks (barring a few small finance banks).
Trying to understand the economics of lending and borrowing between banks and RBI.
Also, If data is available then want to predict when a bank is hungry for funds and may increase their FD rates in near future.
Please share your thoughts and necessary references, where I can read more about it.
Thanks.
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https://www.desidime.com/discussions/repo-rate-vs-fd-discussion?page=1#post_9097112
borrowing is very limited amount = amount of govt securities pledged to rbi -- they can borrow
they can borrow in auctions
for urgent needs its msf rate
bank is lending at minimum 9.15% at present
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