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What is meant by Repo Rate and Reverse Repo Rate.
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Answer / hadit zaman
The rate central Bank of a country lend to other schedule
Bank is called Repo rate.
The rate Central Bank Borrowed from the schedule Bank is
called Reverse Repo rate.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / kanagaraj
Repo Rate : Rate at which RBI lends money to banks. Reverse Repo Rate : Rate at which the RBI borrows from banks.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / bangalore school of banking
hi,
many people dnt understand the actual meaning of repo rate and give the answer as its "the rate of interest" where as its the "redicounted rate",
repo means always a discount on the actual value,repo rate is this discount rate what many think that a discount means we l get less money,
in financial terms a discount means u buy a thing at 1lakh even though its written 1.2 lakh on it,this means a discount of rs.20k,on the other hand if we bother interest it means u buy at 1 lakh now and get 20 % interest after one year ie. u l get rs.20k,the meaning is one and the same that u get rs.20k only,all money market instruments like T bills,commercial papers etc. are always issued as a discount and not as an interest rate what is called coupon rate in financial terms,
so what mr.atul juyal has told is correct what many of u thought is wrongs,m giving below what he wrote,
thanks.
sachidananda rath,proprietor and faculty,BANGALORE SCHOOL OF BANKING,
for concepts of quanti and resoning pl type "BANK PO VIDEOS" or "SACHIDANANDA RATH VIDEOS" in google/youtube right now,
this is what mr.arun juyal wrote,
Repo rate is the discounting rate at which central bank
borrows security from commercial bank.Repo means repurchase
agreement b/w RBI &commercial bank.
Reverse repo is the rediscounting rate at which commercial
bank borrows discounted security from central bank ie RBI.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / binson thomas
repo means it is the rate at which the rbi{central bank of
india }lends the loans or funds to other banks inorder to
meet there immediata needs .the rbi decreases the repo rate
when they lends more money to the other banks while rbi
increases the repo rate when they accept funds from other
banks called as reverse repo rate.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / anupam
Reserve bank charges some interest rate on the cash borrowed by banks. This rate is usually less than the interest rate on bonds as the borrowing is collateral. This interest rate is called ‘repo rate’.
In a reverse repo Reserve Bank borrows money from banks by lending securities. The interest paid by Reserve Bank in this case is called reverse repo rate.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / ranadheer.v
Repo means purchase of one loan and sale of another.Itis
from one day to fourteen days. They involve the sale of
securites against cash with a future buy back agreement.
under such agreement, the seller sells specified securities
with an agreement to repurchase the same at a mutually
decided future date and price. similarly, the buyer purchase
the securities with an agreement to resell the same to the
seller on an agreeed date at a predetermined price. the
transaction is called "REPO. The difference between actually
received and paid is calculated in percentage it is called
"REPO RATE"
Repos are part of open market operations
undertakne to influence short-term liquidity.
Repo is viewed from the perspective of the
seller of the securities, and Reverse Repo when viewed from
the perspective of the buyer of the securities
| Is This Answer Correct ? | 17 Yes | 23 No |
Answer / madhvi vipul o
repo rate means repo rate and reverse means the reverse of
tha same
| Is This Answer Correct ? | 4 Yes | 11 No |
Answer / atul juyal
Repo rate is the discounting rate at which central bank
borrows security from commercial bank.Repo means repurchase
agreement b/w RBI &commercial bank.
Reverse repo is the rediscounting rate at which commercial
bank borrows discounted security from central bank ie RBI.
| Is This Answer Correct ? | 135 Yes | 218 No |
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