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.

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

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.

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.

Answer / neha

No, Bank rate is what commercial banks charge to their
customers. Repo rate is what RBI charge to the commercial
banks

What according to you should be done to increase exports and minimize imports?

0 Answers   RBI,

what is stockslit?

3 Answers   Capital IQ,

i am doing my mba and selected for clerk for sbi now tell me what should i do? can sbi give me leave for the exam if i selected.

2 Answers  

What are the different types of financial reporting?

0 Answers  

Giving a Loan and Credit Provision. What are the differences and the similarities of the two?

3 Answers  

How successful is the LPG policy initiated in 1991?

0 Answers   State Bank Of India SBI,

what is the difference between issuing house and investment bank

1 Answers  

Why are bond prices inversely related to interest rates ?

5 Answers   ICFAI,

What is the role of small and medium enterprises in uplifting the economy?

0 Answers   State Bank Of India SBI,

By Using Visualizations,what Goals Can Users Can Achieve?

0 Answers   IBM,

How can NPAs be reduced?

0 Answers  

how to calculate beta- in portfolio

1 Answers