6. % of deposits that banks are required to keep with RBI
• RBI can vary CRR between 15% and 3%
• Higher the CRR lower will be the liquidity
• In 1990 CRR was 15%
Amount of liquid assets that a financial institution must
maintain in its reserves
• Assets can be cash, precious metals or approved securities
• Ratio of liquid assets to time and demand liabilities
• In 1990 SLR was 38.5%
Buying and selling of government securuities
• RBI sells the bonds to contract the flow of credit
• RBI buys the bonds to increase the flow of credit
7. Retail banking is the provision of services by
a bank to individual consumers, rather than to
companies, corporations or other banks
Also known as consumer banking or
personal banking
Retail banking is conducted by separate
divisions of banks, large and small.
Customer deposits garnered by retail banking
represent an extremely important source of
funding for most banks.
8. Who is a retail banker?
Who is a retail investor?
9. Loan Products
• Auto Loan
• Gold Loan
• House Loan
• Credit cards
• Education Loan
• Loan against
Securities
• Retail Banking
Business
Deposit Products
• Deposits
• Saving Accounts
• Current Accounts
• Fixed / Recurring
• Corporate Salary
A/C
Other
Products/Services
• NRI services
• POS Terminals
• Private Banking
• Demat Services
• Mutual Fund Sales
• Foreign Exchange
Services
10.
11. Base rate reduction • A reduction in the base rate makes loans
cheaper for consumers.
• It reduces the incentive for people to save, as
fixed-deposit rates should drop as well.
Repo Rate Reduction • Lending rate decreases
•Deposit rate also decreases
Business investment • Cheap loans should encourage corporate to take
advantage of cheaper money and invest in their
businesses
• Higher exports and more profits will likely help these
companies’ stocks , resulting in increased corporate tax
revenue for the Indian government.
Boost up infrastructure
sector
• Cheap availability of credit may also work wonders for
India’s investment-starved infrastructure sector.
12.
13. Required by retail bankers to guide
their customer in a right way
Leads to increase the sales pitch
Leads to retain a customer for a
longer period of time
14.
15. Home Loan
It is a good investment option
when the interest rates are low
Avail the loan facility at a cheaper
rate of interest
Tenure: 10-20 years
