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what is repo rate?
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Answer Posted / pooja nagori
Repo rate is the rate at which the RBI lends money to the
commercial banks. It is a tool in the hands of RBI to
control the liquidity in the market. Whenever there is a
shortage of liquid cash , RBI cuts the Repo Rate so that
banks can borrow money from the RBI and can liquidate the
economy by lending more & more.
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