Answers were Sorted based on User's Feedback



Answer / lekha

the rate at which the RBI lends to banks

Is This Answer Correct ?    1671 Yes 90 No

Answer / lekha

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 ?    488 Yes 103 No

Answer / s m mashuque

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 ?    305 Yes 46 No




Answer / seema redhu

repo rate is that rate at which RBI lends securities &
money to other banks.current rate is 7.75.

Is This Answer Correct ?    328 Yes 143 No

Answer / ridhvik

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 ?    176 Yes 12 No

Answer / raj

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 ?    141 Yes 20 No

Answer / sonali

Reo is the interest rate at which the RBI lends money to
other banks for meeting the short term deficits.

Is This Answer Correct ?    105 Yes 29 No

Answer / milind

Repo rate is the rate at which rate RBI lends short term
funds to bank

Is This Answer Correct ?    76 Yes 19 No

Answer / somnath maity

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 ?    102 Yes 46 No

Answer / jogender

repo rate is a rate at which rbi lends money to schedule
banks.

Is This Answer Correct ?    74 Yes 22 No

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