Mumbai june 23 uni the reserve bank of india rbi can now prescribe cash reserve ratio crr to scheduled banks without any floor rate or ceiling rate as per the needs of securing monetary.
Floor rate and ceiling rate of crr.
For those quoting a fixed price for client projects there are two important things to know when it comes to setting a fair price for the work.
Presently banks are not paid any interest on behalf of the rbi for parking the required cash.
An interest rate floor reduces the risk to the bank or other party receiving the interest.
Your floor and ceiling billing rates.
Cheap cake isn t good.
An interest rate ceiling is the maximum interest rate permitted in a particular transaction.
Your floor rate is the minimum rate you must charge to justify your time spent working on the project.
For example an adjustable rate mortgage may have an interest rate floor stating that the rate will not go below 3 5 even if the formula used to calculate the interest rate would have it do so.
It is the opposite of an interest rate floor.
Interest rate floors are utilized in derivative.