Answer / guest

this is a rate at which reserve bank of india borrows money
from the commercial banks. if this rate is more commercial
banks will get more interest on the money given to RBI.

Answer / amit khatri

this is the rate at which the commercial bank gives the loans to the RBI.

Answer / kanu

Reverse Repo rate is the rate at which Reserve Bank of
India (RBI) borrows money from banks. Banks are always
happy to lend money to RBI since their money are in safe
hands with a good interest. An increase in Reverse repo
rate can cause the banks to transfer more funds to RBI due
to this attractive interest rates. It can cause the money
to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank
Rate, Repo Rate and Reverse Repo rate our banks adjust
their lending or investment rates for common man.

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