This document discusses two key monetary policy tools used by the Reserve Bank of India (RBI): the repo rate and statutory liquidity ratio (SLR). The repo rate is the rate at which banks borrow funds from RBI, and cutting this rate makes borrowing cheaper for banks. The SLR is the minimum reserve of liquid assets like cash or government bonds that banks must hold, and cutting the SLR frees up more funds for banks to lend. Recently, RBI cut the repo rate by 150 basis points to 7.5% and the SLR by 100 basis points to 24% to make borrowing cheaper for banks and allow them to lend more.