Answer / utpal

Repo or Repurchase rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand they are facing for money (loans) and how much they have on hand to lend.

If the 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.

Bank Rate

This is the rate at which RBI lends money to other banks (or financial institutions)

The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa.

Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate, the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.

Answer / pardeep rawat

bank rate is rate at which rbi give loan to mkt for long
period and repo rate serve same purpose for short period.
it is for short period

Answer / rahul sharma

repo rate is a short-term measure, i.e. applicable to short-
term loans and used for controlling the amount of money in
the market,
bank rate is a long-term measure and is governed by the
long-term monetary policies of the RBI.

Answer / prashant

Interest rate charge by commercial or scheduled bank from
it's customer or Client for the loan they have taken from bank.

Repo rate is coupon (interest)rate charge by RBI from bank
or any other financial institution for the loan they have
taken from RBI by pledging of collateral.this loan would be
for short period ie. maximum for 14 days.

Answer / neha

No, Bank rate is what commercial banks charge to their
customers. Repo rate is what RBI charge to the commercial
banks

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