Indian Economy·Prelims Strategy

Policy Rates and Tools — Prelims Strategy

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Version 1Updated 5 Mar 2026

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Prelims Strategy

For Prelims preparation, focus on memorizing current rates and their recent changes - repo rate (6.50%), SDF rate (6.25%), MSF rate (6.75%), CRR (4.50%), SLR (18%). Understand the LAF corridor mechanism and the role of each rate.

Pay special attention to recent innovations like SDF introduction in April 2022 and its rationale. Practice questions on MPC composition (6 members, meets 6 times annually) and decision-making process.

Common traps include confusing repo with reverse repo rates, mixing up CRR and SLR purposes, and incorrect MPC meeting frequency. Use elimination techniques by understanding the logical relationships - MSF rate is always higher than repo rate, SDF rate is always lower.

Stay updated with latest MPC decisions and their rationale as these frequently appear in current affairs-based questions.