what is repo rate?
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Answer / brindpreet
repo rate is the rate at which the rbi lends short term
funds to the commercial banks
| Is This Answer Correct ? | 57 Yes | 14 No |
Answer / sanjay mandal.
repo rate is the rate of interest which is fixed by rbi to
lend money to bank & taking bank securites.
reverse repo rate is the rate at which rbi taking out money
from the bank and return the bank security to the bank it
is also decided by rbi itself.
repo rate and reverse repo rate both are decided by rbi to
control thr liqudity in the system.
repo rate increase to inject liqudity in the system and
reverse repo rate decided to taking out money(sucking out)
in the system.
| Is This Answer Correct ? | 51 Yes | 9 No |
Answer / navin dubey
Repo rate is a rate on which rbi lend omney to the
commercial bank and take securities from there.
| Is This Answer Correct ? | 46 Yes | 7 No |
Answer / abhilasha kadian
repo rate is the rate at which bank borrows money from RBI
and it is a way through which rbi injects liquidity in the
economy
| Is This Answer Correct ? | 47 Yes | 10 No |
Answer / ashwani
the rate at which central bank repurchase government
securities from the commercial banks to inject liquidity in
the market.
| Is This Answer Correct ? | 44 Yes | 12 No |
Answer / juby
reporate is the intrest rate at which rbi lends to other
banks.Repo rate increase 'll increase the cost of borrowing
of banks.Or it may indirectly tents to increase the loan
rates.
| Is This Answer Correct ? | 9 Yes | 3 No |
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 ? | 6 Yes | 0 No |
Answer / merin
repo rate is the rate at which banks borrow money from RBI
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / ashish srivastav
Repo is short term whereas Bank rate is long term. Thus
Repo rates are also called short term lending rate and Bank
rates are called long term lending rates. Now if the Repo
rate > Bank rate, it signifies that short term borrowing of
funds is more expensive for commercial banks. Incedentally,
this short term borrowing through Repo is required by the
banks to maintain its CRR. Thus if Repo rate is increased,
bank will reduce its lending to public because to maintain
the CRR bank will have to now borrow from RBI at a higher
Repo rate. Thus increase of Repo is done to suck liquidity
from the economy.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / harsha
This is one of the tool that RBI has to control
liquidity/inflation.
When RBI revises the rate for lending MONEY against
Securities to BANKS, it is called REPO RATE. Here, the RBI
is the Lender and the Banks are the borrower. If the REPO
rate is raised by the RBI, then Banks have to borrow money
at higher rate.
When RBI revises the rate for lending SECURITIES for Money
to BANKS, it is called REVERSE REPO RATE. Here, the RBI is
the Borrower and the Banks are the Lender. If the REVERSE
REPO rate is raised by the RBI, then RBI has to borrow
money at higher rate.
| Is This Answer Correct ? | 8 Yes | 4 No |
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