Answer / deveshvarshney

Repo rate and bank rate are the rates at which RBI lends
money to commercial banks or commercial banks borrow the
money from RBI....but the only difference betwwen the two
terms is that Repo rate is for short term and bank rate is
for long term....

Answer / nishant sehgal (mba - finance)

its very a sorry state to see such kind of answer from
person of mutual find industry. so repo rate is basically
an annualised rate at which buyer of securities would lend
to seller of securities. this is a mechanism which is
commonly used by rbi to control the liquidity in the market.
when we see this mechanism from borrower point of view it
is called repo and when we see it from lender point of view
it is called reverse repo.

where as bank rate is a simple rate at which rbi lends to
commercial banks. thats it...............

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