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Question
what is repo rate?
 Question Submitted By :: Teju
I also faced this Question!!     Rank Answer Posted By  
 
  Re: what is repo rate?
Answer
# 1
The rate at which RBI borrows from the bank
 
Is This Answer Correct ?    246 Yes 786 No
Pooja
 
  Re: what is repo rate?
Answer
# 2
the rate at which the RBI lends to banks
 
Is This Answer Correct ?    1134 Yes 67 No
Lekha
 
 
 
  Re: what is repo rate?
Answer
# 3
repo and reverse repo rate are the rates at which the rbi 
lends to banks and banks park excess funds with the central 
banks
 
Is This Answer Correct ?    362 Yes 77 No
Lekha
 
  Re: what is repo rate?
Answer
# 4
repo rate is that rate at which RBI lends securities & 
money to other banks.current rate is 7.75.
 
Is This Answer Correct ?    247 Yes 88 No
Seema Redhu
 
  Re: what is repo rate?
Answer
# 5
Repo rate refers to the interest rate at which RBI lends to 
banks in short term or overnight, while reverse repo is the 
rate for borrowing from banks.
 
Is This Answer Correct ?    221 Yes 35 No
S M Mashuque
 
  Re: what is repo rate?
Answer
# 6
Repo rate is the rate at which the reserve bank of India on 
deficit borrows from the commercial banks. and reverse repo 
rate is the interest rate at which RBI lends to the 
commercial banks....
 
Is This Answer Correct ?    46 Yes 186 No
Sushil Kalra
 
  Re: what is repo rate?
Answer
# 7
Repo rate is the discount rate at which central bank 
repurchases govt. securities from commercial banks to 
inject liquidity in the market.
 
Is This Answer Correct ?    39 Yes 95 No
Pratibha
 
  Re: what is repo rate?
Answer
# 8
repo rate is the rate at which rbi discount securities like 
treasury bill to the bank. To meet certain liquidity 
standards ,from time to time, banks sell their securities 
like treasury bills to rbi at a discount price called 
reporate ,for a short period of time like overnight or fort 
night . after specified time banks repurchase the bill at 
its face value. so high repo rate high loss for banks or 
hike in reporate absorbe liquidity from the market by less 
lending to the banks, which in turn tame inflation.
 
Is This Answer Correct ?    76 Yes 33 No
Somnath Maity
 
  Re: what is repo rate?
Answer
# 9
repo rate is the interest rate at which the reserve bank of
india or central bank of the nation provide loans to
commercial banks
 
Is This Answer Correct ?    106 Yes 14 No
Raj
 
  Re: what is repo rate?
Answer
# 10
Reo is the interest rate at which the RBI lends money to 
other banks for meeting the short term deficits.
 
Is This Answer Correct ?    84 Yes 21 No
Sonali
 
  Re: what is repo rate?
Answer
# 11
the rate which is refundable by RBI
 
Is This Answer Correct ?    18 Yes 62 No
Naresh
 
  Re: what is repo rate?
Answer
# 12
The rate at which RBI borrows from the bank
 
Is This Answer Correct ?    23 Yes 99 No
Naresh
 
  Re: what is repo rate?
Answer
# 13
the rate at which rbi borrow money from bank for short 
period to inject liquidity in the market.
 
Is This Answer Correct ?    18 Yes 71 No
Mukesh Chandra
 
  Re: what is repo rate?
Answer
# 14
repo rate is a rate at which rbi lends money to schedule 
banks.
 
Is This Answer Correct ?    58 Yes 20 No
Jogender
 
  Re: what is repo rate?
Answer
# 15
Repo rate is the rate at which rate RBI lends short term 
funds to bank
 
Is This Answer Correct ?    59 Yes 18 No
Milind
 
  Re: what is repo rate?
Answer
# 16
Repo and Reverse Repo are tools available in the hands of 
RBI to manage the liquidity in the system. It either 
injects liquidity into the market if the conditions are 
tight or sucks out liquidity if the liquidity is excess in 
the system through the Repo and Reverse Repo mechanism, 
besides a host of other measures.

Now in REPO RBI injects liquidity into the system i.e. it 
purchases the securities from the banks and lends money to 
them to ease their liquidity crunch. The rate charged by it 
for lending money is the REPO rate.

Reverse REPO is the opposite of REPO: When liquidity is 
excess in the system. RBI sucks it out by Reverse REPO by 
lending securities and taking out money from banks. The 
rate charged for it is the Reverse Repo rate. 
These rates, form the bottom and the top of the Call money 
lending/borrowing of the banks. The call money rates 
generally fall in between this corridor.
 
Is This Answer Correct ?    136 Yes 7 No
Ridhvik
 
  Re: what is repo rate?
Answer
# 17
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 ?    22 Yes 35 No
Parvinder Soni
 
  Re: what is repo rate?
Answer
# 18
the rate at which central bank repurchase government 
securities from the commercial banks to inject liquidity in 
the market.
 
Is This Answer Correct ?    34 Yes 9 No
Ashwani
 
  Re: what is repo rate?
Answer
# 19
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 ?    6 Yes 25 No
Leena
 
  Re: what is repo rate?
Answer
# 20
repo rate is the rate at which companies lend to the 
burrowers on repurchased securities...
 
Is This Answer Correct ?    7 Yes 34 No
Swetha
 
  Re: what is repo rate?
Answer
# 21
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 ?    38 Yes 8 No
Sanjay Mandal.
 
  Re: what is repo rate?
Answer
# 22
Repo rate is a rate on which rbi lend omney to the 
commercial bank and take securities from there.
 
Is This Answer Correct ?    35 Yes 5 No
Navin Dubey
 
  Re: what is repo rate?
Answer
# 23
The rate at which RBI borrows from the bank.
 
Is This Answer Correct ?    12 Yes 43 No
Leena
 
  Re: what is repo rate?
Answer
# 24
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 ?    32 Yes 7 No
Abhilasha Kadian
 
  Re: what is repo rate?
Answer
# 25
repo rate is the rate at which the rbi lends short term 
funds to the commercial banks
 
Is This Answer Correct ?    42 Yes 11 No
Brindpreet
 

 
 
 
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