Answer Posted / sandhu
repo stands 4 'repurchase offer'n repo rate is th interest
rate which comm. banks pay 2 th RBI.. actually all comm.
banks hav Govt. bonds r securities....these banks sell their
bonds 2 RBI 2 get money 4 their short term
purposes...usually fortnightly......whenever RBI wants 2
inject liquidity in th system it reduces th repo
rate......currently it is pegged at 7.5%
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