what is the diff among repo rate,reverse repo rate and bank
rate?
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Answer / sanam chopra
Repo rate is the rate at which banks borrow money from RBI. current repo rate 5.25%
reverse repo is the rate at which Rbi borrows money from bank, currrent rate is 3.75%
Repo is an arrangement basically between two parties where one party keeps the security with the other party to repurchase it from him at a future date and at a higher price.
Bank rate is the rate charged by central bank on loans and advances given.
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Answer / sudhakar bhartiya
repo rate is the rate at which RBI lends the money to other
banks, reverse repo rate is the rate at which RBI borrows
money from other banks to suck the money or excessive money
from the market. bank rate is similar to the repo rate,
difference only being is that repo rate is for smaller
period of time while bank rate applies for the longer
period of time.
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