What is meant by Repo Rate and Reverse Repo Rate.
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Answer / swapnil
Repo rate means the percentage at which RBI lends money to
other banks.
And reverse repo rate means the interest rate which the
other banks get by depositing their money to RBI.
| Is This Answer Correct ? | 21 Yes | 16 No |
Answer / kavita poddar
Repo (Repurchase) rate is the rate at which the RBI lends
shot-term money to the banks. When the repo rate increases
borrowing from RBI becomes more expensive. Therefore, we
can say that in case, RBI wants to make it more expensive
for the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to
borrow money, it reduces the repo rate.
Reverse Repo rate is the rate at which banks park their
short-term excess liquidity with the RBI. The RBI uses
this tool when it feels there is too much money floating in
the banking system. An increase in the reverse repo rate
means that the RBI will borrow money from the banks at a
higher rate of interest.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / leela
repo rate is the rate at which RBI lends money to the other commercial banks on their securities.
reverse repo rate is reverse like where banks lends money to the RBI
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / swathirupa
Repo rate is the interest rate at which the reserve bank of
India lends mney to other banks.
Reverse repo rate is return banks earn on excess funds
parked with the central bank against Government securities.
| Is This Answer Correct ? | 8 Yes | 6 No |
Answer / amar singh
Repo rate is the rate at which the banks can borrow money
from a central bank of the country in order to avoid
scarcity of funds.For eg, whenever the banks have any
shortage of funds they can borrow it from Reserve Bank of
India (RBI). Thus 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.
It is also a financial & economic tool in the hands of
government to control the availability of money supply in
the market by altering the repo rate from time to time.
Reverse repo rate is return banks earn on excess funds
parked with the central bank against Government securities
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / neha
Repo Rate is the rate at which the RBI buys government securities from the market to infuse liquidity in the system.
Reverse Repo rate is the rate at which the RBI absorbs excess bank funds by selling government securities in the market.
| Is This Answer Correct ? | 3 Yes | 2 No |
Answer / jitendra ram
Repo rate is a collatarlized lending arrangement in which
commercial banks borrow money from RBI through selling a
securities with a promise to repurchase the same securities
at a predetermined rate and time.Thus rate paid by BANKS to
RBI on such borrowing is called REPO RATE.
In Reverse repo RBI borrow money from Banks through selling
a securites to repurchase the same securities at the agreed
terms and rate. Thus rate paid by RBI on such borrowing to
Banks called REVERESE REPO RATE.
| Is This Answer Correct ? | 1 Yes | 0 No |
Repo (Repurchase) rate is the rate at which the RBI lends
shot-term money to the banks. When the repo rate increases
borrowing from RBI becomes more expensive. Therefore, we
can say that in case, RBI wants to make it more expensive
for the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to
borrow money, it reduces the repo rate
Reverse Repo rate is the rate at which banks park their
short-term excess liquidity with the RBI. The RBI uses this
tool when it feels there is too much money floating in the
banking system. An increase in the reverse repo rate means
that the RBI will borrow money from the banks at a higher
rate of interest. As a result, banks would prefer to keep
their money with the RBI
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / paramesh
repo rate means rbi lends money to other banks.
reverse repo rate means rbi borrows money from other banks
| Is This Answer Correct ? | 0 Yes | 0 No |
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