What is meant by Repo Rate and Reverse Repo Rate.
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Answer Posted / binson thomas
repo means it is the rate at which the rbi{central bank of
india }lends the loans or funds to other banks inorder to
meet there immediata needs .the rbi decreases the repo rate
when they lends more money to the other banks while rbi
increases the repo rate when they accept funds from other
banks called as reverse repo rate.
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