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The Bank Rate is the penal rate for shortfalls in maintaining:
ARepo and SDF
BCapital funds
CMSF and OMO
DCRR and SLR
Answer & Solution
Correct answer: D. CRR and SLR
1. The Bank Rate is the rediscount rate.
2. It also punishes reserve shortfalls.
3. Those reserves are CRR and SLR.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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