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Yet again RBI has increased the CRR by another 50 basis points and Repo by 25 basis points. Now CRR and Repo rates stand at 6.5% and 7.75% respectively. This is the third time since Jan 2007 , RBI has done this in its continued  battle against rising inflation.

This write up is an effort to simplify the concepts like CRR and Repo and explain their impact on inflation and liquidity.

CRR-Cash Reserve Ratio- It is the portion of cash balance that every bank has to keep with RBI and it is calculated every fortnight. It is simple! more the CRR, more the cash to be deposited with RBI and inturn it reduces the lendable cash balance of Banks and reduces the supply of money in market. Thus it is used as a weapon to reduce inflation.

Repo-Repurchase agreement- In simple language Repo is referred as Selling to buy and Reverse repo is the inverse of that. Here RBI sells the govt. securities, to Banks at certain rate and after the stipulated period it buys back them paying , a price which is over and above what it received.  For example if the RBI sells the security at Rs.100 and buys back them after, say 1 year at Rs. 110, then Rs. 10 is the interest paid by RBI for the amount it received while selling the security. And this is called as Repo rate. When RBI increases the Repo rate Banks will park more money in govt. securities to earn more interest and this will again reduces their lendable balance and hence the liquidity in the market is reduced and inflation curbed.

Today morning Indian cricket team has returned to home land. Friend who was at B`lore Airport to welcome his sister, said except Press Photographers no body was interested to see Dravid and Kumble.

Experts have said, we have heard , Media has wasted reams of paper in analysing the disastarous performance of Team India. Fans have pelted stones, burnt effigy etc.etc,. Lots of funny SMSs and Mails have been making rounds across India through Desktops and Mobiles.

Who will be the new coach? Who will be the new captain? Who are all in/out ? these are the questions in the air.

By the way If you people had seen the match between Australia and South Africa, I think there is lot to learn from that single match. Attitude, Aggressiveness, Killer Instincts are the three main attributes lacking in Indian squad. Bring these three and you will see tremendous change. But who (BCCI, Selection committee, coach, etc.) has got time for all these silly things?????

Is it too late to write about `Mungaru Malae`, that too when the media is overflowing with the stories of its making, success and its after effects? I don`t know .

But it is true , I decided to have a look at it only when there was a overflow of appreciation for it both in media and friends` circle. Even today I am surprised, that Ravi Belagere decided to devote his weekly`s front page to shower praises on Yogaraj Bhat (Director).

`Mungaru Male` in a nutshell, simple story, tight narration, slightly unexpected ending, good music, excellent cinemotography, great lyrics by Jayant and Yogaraj Bhat himself. Music and lyrics comparable to the standards set by `Amruthavarshini` (another great kannada hit).

Kannada audience wanted a break from the `machhu and katti ` stuff and were bored of the same faces, in that sense it was also a good timing by Yogaraj Bhat and team. Excellent performance by supporting cast and good show by Ganesh (glimpses of Rajesh Khanna here and there) and Sanjana Gandhi.

Thanks to Nagatihalli Chandrashekar for introducing a software engineer turned music director (Mano murthy) to kannada industry with his `America America`.

Coming to Economics, film has already made six times the money invested i.e. Return on capital is 6. And the audio sales has also brought in decent amount of money. Hope we will watch the Tamil, Telugu and Malayalam version of this movie soon.