Answer / Shikha Kushwaha

In Indian banking, there are typically three main interest rate benchmarks: the Repo Rate (the rate at which commercial banks borrow funds from the Reserve Bank of India), the Reverse Repo Rate (the rate at which commercial banks lend funds to the Reserve Bank of India), and the Marginal Standing Facility Rate (a short-term borrowing facility provided by the RBI for banks in emergency situations). These rates are called base rates as they form the basis for setting other interest rates offered by banks.nnIn addition, banks may use additional relative rates such as MCLR (Marginal Cost of Funds-based Lending Rate) and PLR (Prime Lending Rate) to set specific loan rates.

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