what is repo rate?
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IT IS THE INTEREST RATE WHICH RBI CHARGES TO BANKS FOR
COLLATERALIZED SHORT TERM LOAN IS KNOWN AS THE REPO RATE.
DURING TIGHT LIQUITY CONDITIONS (AS IN 2008) WHEN BANKS
APPROACH RBI AND ASK FOR TEMPORARY LOAN. RBI GIVES LOAN
AFTER TAKING COLLATERAL I.E. G-SECS. THE INTEREST RATE WHICH
RBI CHARGES FOR SUCH SHORT TERM LOAN IS KNOWN AS REPO RATE.
AFTER THE SHORT TERM PERIOD IS OVER, BANKS HAVE THE
OBLIGATION TO REPAY THE MONEY BACK TO RBI, ALNG WITH
INTEREST AND 'BUYS BACK' THE G SECS, HENCE THE TERM
REPURCHASE AGREEMENT
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / jijo thomas
Whenever the banks have any shortage of funds they can
borrow it from RBI. Repo rate is the rate at which our
banks borrow rupees from RBI. A reduction in the repo rate
will help banks to get money at a cheaper rate. When the
repo rate increases borrowing from RBI becomes more
expensive.
The rate charged by RBI for its Repo operations is 4.75%
and Reverse Repo rate is 3.25%.
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / jenamani satyabhanu mohapatra
Repo rate is the interest rate at which RBI lends money or
securities to other banks. Currently the RBI has increased
the reporate from 7.75% to 8%. the main reason for the hike
is to control the current inflation in our country, which
is now 8.24% and it is expecyed to cross 10%,by several
economist.
| Is This Answer Correct ? | 3 Yes | 5 No |
Answer / priyanka
When central bank repurchase government securities from
commercial bank,To inject liquidity in market is known as
repo rate.
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / neeraj
Whenever the banks have any shortage of funds they can
borrow it from RBI. Repo rate is the rate at which our banks
borrow rupees from RBI. A reduction in the repo rate will
help banks to get money at a cheaper rate. When the repo
rate increases borrowing from RBI becomes more expensive.
| Is This Answer Correct ? | 2 Yes | 5 No |
Answer / vijay kumar yadav
repo rate a rate at which RBI borrow from the bank,,,,,,,
| Is This Answer Correct ? | 6 Yes | 12 No |
Answer / parvinder soni
Repo rate is the rate at which banks borrow funds from the
RBI to meet the gap between the demandthey are facing for
money (loans) and how much they have on hand to lend. If
RBI wants to make it more expensive for the banks to borrow
money, it reduces the repo rate.
| Is This Answer Correct ? | 28 Yes | 43 No |
Answer / leena
It is the rate at which teh RBi pumps in short term
liquidity into the system or rate at which RBI borrows from
the banks.
| Is This Answer Correct ? | 11 Yes | 33 No |
Answer / swetha
repo rate is the rate at which companies lend to the
burrowers on repurchased securities...
| Is This Answer Correct ? | 10 Yes | 46 No |
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