Treasury

Bank treasury operations, investments, and money markets.

Articles

CRR, SLR, and Repo Rate: How RBI's Treasury Tools Affect Bank Liquidity

Every bank's treasury desk works within limits set by RBI's CRR, SLR, and repo rate policy. Here is what each tool does and how they connect to a bank's day-to-day liquidity.

19 Jun 2026 · 2 min read

Frequently Asked Questions

For loans linked to an external benchmark or a bank's repo-linked lending rate, a repo rate hike typically feeds through to a higher lending rate over time, which can increase EMIs or loan tenure depending on the loan structure.

CRR and SLR directly affect the quantity of funds available for banks to lend, while the repo rate affects the price (cost) of short-term borrowing — RBI uses a combination of tools depending on whether it wants to manage liquidity, rates, or both.