IS BANK RATE AND REPO RATE THE SAME
Answers were Sorted based on User's Feedback
Answer / utpal
Repo or Repurchase rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand they are facing for money (loans) and how much they have on hand to lend.
If the RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions)
The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa.
Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate, the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.
Is This Answer Correct ? | 2 Yes | 0 No |
Answer / pardeep rawat
bank rate is rate at which rbi give loan to mkt for long
period and repo rate serve same purpose for short period.
it is for short period
Is This Answer Correct ? | 7 Yes | 6 No |
Answer / rahul sharma
repo rate is a short-term measure, i.e. applicable to short-
term loans and used for controlling the amount of money in
the market,
bank rate is a long-term measure and is governed by the
long-term monetary policies of the RBI.
Is This Answer Correct ? | 2 Yes | 1 No |
Answer / prashant
Interest rate charge by commercial or scheduled bank from
it's customer or Client for the loan they have taken from bank.
Repo rate is coupon (interest)rate charge by RBI from bank
or any other financial institution for the loan they have
taken from RBI by pledging of collateral.this loan would be
for short period ie. maximum for 14 days.
Is This Answer Correct ? | 1 Yes | 2 No |
Answer / neha
No, Bank rate is what commercial banks charge to their
customers. Repo rate is what RBI charge to the commercial
banks
Is This Answer Correct ? | 6 Yes | 17 No |
Tell something about BRICS Summit?
Who is the Governor of Reserve bank of India (RBI)?
Describe the dynamics of culture as a multi-level, multi- layer construct.
Hi My name is Jay, I am 2007 batch passout engineering student.I have been working in a very good software organisation(CMM level 5) since last one year. One month before I have taken an admission to PGDBA in FINANCE(Post Graduation Diploma in Business Administration) in Welingkar Institute, Mumbai.Course duration is of 2 year. I want to know specifically that how exactly this new degree will b benificial for my carier growth. Can I change my line of job from s/w to Finance ? How exactly shall I proceed so as to get the optimum benifit of PGDBA degree?
Differences between forward contract and futures contract?
What is SEBI?
40 Answers GTL, HLL, IBM, ICICI, SEBI, State Bank Of India SBI, Syntel, United Company,
meaning of security data pointers
What is 'overdraft facility'?
Where Does Revenue Received In Advance Go On A Balance Sheet?
Explain dematerialization?
0 Answers Nabard, State Bank Of India SBI,
explaine me what the stock market points & how to decide increase in points.
what is difeerence between factoring and leasing?