Answer / chandana

whenever there is shortage of funds for banks they can
barrow money from RBI.Repo rate is rate at which banks
barrow money from RBI.A reduction in the repo rate will help
banks to get money at a cheaper rate. When the repo rate
increases borrowing from RBI becomes more expensive.

Answer / nithin batchu

repo, the name only tells its a repurchase transaction
where two parties ie., RBI and a bank is involved. whenever
there is shortage of funds for bank to meet its CRR and SLR
requirements, they borrow funds from RBI on a repurchase
agreement at a certain rate called Repo Rate.

Answer / prince

REPO nothing but as its refer to purchase of loan against
the sale of another of securities.REPO offered on a daily
fixed rate basis to provide signals to money market rates of
stability to short -term rates.

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