Answer / kotreshsarang

Its rate RBI lends to Banks,This will directly link to Bank
interest rate,Increase in repo rates means increase in
Fixed deposits rate and relatively increase in loan
Interest rates.

Answer / atul gupta

the rate on which bank can take loan from RBI.

Answer / swapnanjali

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.

Answer / nagendra pratap singh

Repo and Reverse Repo are tools available in the hands of
RBI to manage the liquidity in the system. It either
injects liquidity into the market if the conditions are
tight or sucks out liquidity if the liquidity is excess in
the system through the Repo and Reverse Repo mechanism,
besides a host of other measures.

Now in REPO RBI injects liquidity into the system i.e. it
purchases the securities from the banks and lends money to
them to ease their liquidity crunch. The rate charged by it
for lending money is the REPO rate.

Reverse REPO is the opposite of REPO: When liquidity is
excess in the system. RBI sucks it out by Reverse REPO by
lending securities and taking out money from banks. The
rate charged for it is the Reverse Repo rate.
These rates, form the bottom and the top of the Call money
lending/borrowing of the banks. The call money rates
generally fall in between this corridor.

Answer / sudip

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.

Answer / shajid khan

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.

Answer / saaaaz

The rate at which a loan is granted when an asset is given
as collateral or security for the loan, and where the asset
will be repossessed by the borrower to redeem the loan.

Answer / shashi

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.

Answer / durgak

Whenever the banks have any shortage of funds they can
borrow it from RBI. Repo rate is the rate at which 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.

Answer / naresh

RIPO RATE:- "The rate" at which the RBI repurchases the
treasury bills from the commercial banks for short-term –is
Called "REPO RATE ".

When "Liquidity is tightened" repo rate will be raised.

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