Are Bankrate, Discount rate and Repo rate the same in Indian context?

Question Posted / amanjee

4 Answers
7225 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

Are Bankrate, Discount rate and Repo rate the same in Indian context?..

Answer / anil

bank rate, discount rate and repo rate are not same in
indian context according to RBI.

Is This Answer Correct ?

9 Yes

0 No

Are Bankrate, Discount rate and Repo rate the same in Indian context?..

Answer / puja

No they are not same. Bank rate is the rate which RBI puts
on the lending of other banks. Discount rate is used in the
case of issue of shares or bonds. Repo rate is the
difference between the rate which a bank gives in the case
of securities and repurchase of the securities.

Is This Answer Correct ?

13 Yes

4 No

Are Bankrate, Discount rate and Repo rate the same in Indian context?..

Answer / badri.jena

The above explanation was near to answer but not correct.

The bank rate is also known as Discount rate, through this
rate central bank of a country give loans and advances to
commercial banks. It is also a tool of central bank to curb
inflation and deflation as well.

Whereas repo rate is the rate, the central bank charges
when commercial banks approach for borrowings to bridge
their fund shortages.

Is This Answer Correct ?

4 Yes

0 No

Are Bankrate, Discount rate and Repo rate the same in Indian context?..

Answer / sumitra.raghavan

bank rate rate at wch rbi rediscountsbill of banks
discount rate at wch banks discounts the bill
repo rate at wch rbi repurchase govt sec 4m banks

Is This Answer Correct ?

2 Yes

1 No

Post New Answer

More Banking Finance Interview Questions

What does market survey mean?

0 Answers Bank of Baroda,

Expand MSR.

0 Answers

What is ‘crossed cheque’? Explain

0 Answers

Any idea to improve banking services?

0 Answers State Bank Of India SBI,

Tell me about your interests

0 Answers HPCL, Hughes Systique Corporation,

Tell about NABARD and its working?

0 Answers RBI,

What Personal Characteristics Should A Bank Clerk Possess?

0 Answers

what is the difference between accounts and finance.

32 Answers Ocwen,

How can a company invite public deposits through advertisements?

0 Answers

What About Co-signers?

0 Answers

6. Equipment A has a cost of Rs.75,000 and net cash flow of Rs.20000 per year for six years. A substitute equipment B would cost Rs.50,000 and generate net cash flow of Rs.14,000 per year for six years. The required rate of return of both equipments is 11 per cent. Calculate the IRR and NPV for the equipments. Which equipment should be accepted and why?

1 Answers

what is the difference between cash memo or credit memo vs invoice any legal action can be taken against cash or credit memo.

0 Answers

For more Banking Finance Interview Questions Click Here