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what is repo rate?
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Answer Posted / kirthi
Whenever the banks have any shortage of funds they can
borrow it from RBI. Repo rate is the rate at which our
banks borrow rupees 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. From Jan 2009 the Repo Rate is 5.5%
Reverse Repo rate is the rate at which Reserve Bank of
India (RBI) borrows money from banks. 4%
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