What is meant by Repo Rate and Reverse Repo Rate.
- 28 Answers
- 142635 Views
- Andhra Bank, Capital IQ, Idbi Bank, Search Enterprises, State Bank Of India SBI, WNS, I also Faced
- E-Mail Answers
Answer Posted / subrata hazra
Repo (Repurchase) rate is the rate at which the RBI lends
shot-term money to the banks. When the repo rate increases
borrowing from RBI becomes more expensive. Therefore, we
can say that in case, 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
Reverse Repo rate is the rate at which banks park their
short-term excess liquidity with the RBI. The RBI uses this
tool when it feels there is too much money floating in the
banking system. An increase in the reverse repo rate means
that the RBI will borrow money from the banks at a higher
rate of interest. As a result, banks would prefer to keep
their money with the RBI
| Is This Answer Correct ? | 1 Yes | 1 No |
Post New Answer View All Answers
what is balancesheet adjustment a/c. what is the use of this a/c in sap fico
what types of essays are giving in bank of america. can any one tell the opics? LAVANYA
OUR BOOKS & ITR MISMATCH FOR RS.15000/- ON ACCOUNTS OF TDS ON RECIEPTS FY-09-10 . KINDY GIVE CORRECTION ENTRY TO MATCH THE BOOKS WITHI ITR. DEVENDRASINGH086@GMAIL.COM
What are motive behind mergers And acquisitions?
Nike,Inc. has developed a variable-overhead rate of $10 per machine hour,and estimates fixed overhead $250,000 for production up to 100,000 units per year. If the production manager estimates 9,000 machine hours for the production of 90,000 units next year, what are estimated variable-overhead costs?
i want report country wise with invoice number for gl account
What was key roles of Cashflow statement and Fund flow statement and Balnsheet..?
Hai i am mathi Preparing for bsrb clerical examinations.If anybody had that please mail me at mathiy@rediffmail.com
what are the difference between banking institutions and financial institutions?
In financial management why we calculate the cost of debt, (cost of capital) while rate of interest is given.
which name written in Tan application form Applicant is sole proprieter companies name or individual name?
What z d diff of accounting principle,accounting standard,accounting rules,accounting procedures,accounting concepts??????
what is the difference between accounts manager and finance manager?
Define Salry for the following purpose 1.To calculate HRA
Expand ________FOR
