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What is bank rate
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Answer / shinoj.k.s.
Investopedia Says: A central bank adjusts the supply of
currency within national borders by adjusting the bank
rate. When the central bank reduces the bank rate, it
increases the attractiveness for commercial banks to
borrow, thus increasing the money supply. When the central
bank increases the bank rate, it decreases the
attractiveness for commercial banks to borrow, consequently
decreasing the money supply.
Bank Rate
6.00% (w.e.f. 29/04/2003)
Some of the other rate
Saving bank rate:- 3.5%
Deposit Rate - 6.00% - 7.50%
| Is This Answer Correct ? | 17 Yes | 5 No |
Answer / hariprasad
BANK RATE IS THE RATE AT WHICH CENTRAL BANK LENDS FUNDS TO
COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTIONS. THE
VARIATION IN BANK RATE HAS AN INVERSE EFFECT ON DEMAND FOR
BORROWINGS BY THE COMMERCIAL BANKS FROM THE APEX BANK.
| Is This Answer Correct ? | 12 Yes | 0 No |
Answer / pragya maithil
the standard rate at which rbi is prepared 2 buy or
reaccoun bills or other commercial papers eligible 4
purchase under rbi act 1934 in section 49.
believ me this is the perfect definition of bank rate
| Is This Answer Correct ? | 0 Yes | 0 No |
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