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what is repo rate?
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Answer Posted / shivani
The Rate at RBI lends money to the banks or bank borrows
money from RBI.If it gets increased then it becomes
difficult for the banks to meet their liquidity
standards.To fulfill their deficient gap banks in terms
incraeses loan rates.
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1) why rbi charges more interest rate in d form of repo while borrowing from commercial banks, and lends at a lower interest rate(reverse repo) to d commercial banks? 2) Do cooperative banks need to maintain policy rates with rbi? 3) why rbi does'nt pay any interest rate on CRR?
