what is repo rate?
- 147 Answers
- 200511 Views
- Accenture, Alstom, Birla Sun Life, Capital IQ, Corporation Bank, Dena Bank, Ernst Young, ICICI, Ing Vysya Bank, MBA, Morgan Stanley, Nabard, RBI, Sanat, Siemens, State Bank Of India SBI, TATA, UPSC, I also Faced
- E-Mail Answers
Answer Posted / dinesh todi
repo rate is the rate at which bank borrows money from RBI
and it is a way through which rbi injects liquidity in the
economy
Repo and Reverse Repo are tools available in the hands of
RBI to manage the liquidity in the system. It either
injects liquidity into the market if the conditions are
tight or sucks out liquidity if the liquidity is excess in
the system through the Repo and Reverse Repo mechanism,
besides a host of other measures.
Now in REPO RBI injects liquidity into the system i.e. it
purchases the securities from the banks and lends money to
them to ease their liquidity crunch. The rate charged by it
for lending money is the REPO rate.
Reverse REPO is the opposite of REPO: When liquidity is
excess in the system. RBI sucks it out by Reverse REPO by
lending securities and taking out money from banks. The
rate charged for it is the Reverse Repo rate.
These rates, form the bottom and the top of the Call money
lending/borrowing of the banks. The call money rates
generally fall in between this corridor.
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
Hello every one i'm going to interview for as an account profile company is construction works so plz guys help me about furthering interview question
is there any chance for confilcts between an accountant and a sales executive ? If yes how do you resolve the same as an accountant ?
Take me through the entire vendor cycle.
what is a Depository Participant?
Short Answer on ______Transaction
Explain significance of Nastro and Vastro in accounts?
Workers name-Madhu Saha.Pay structure,basic-5850,HRA-1350,CCA-900,TRAV.ALLOW.900.DEDUCTION-PF-702.ESI-150,P.TAX-90.WHAT IS THE EXTRACT IN PF,ESI,IN BALANCE SHEET & sALARY IN p/l A/C . iS IT POSSIBLE THAT PERSONS'S NAME SHOUL COME I P/L
What is Inventory Control?
Expand---------MDOT
what can increase gearing?
what is mean by provision ? give me examples ..
How shall I calculate the true profit of my business, as I am a layman for accounting.
After Posting the Document in SAP FICO Using the sort key then where we can see the sort key in SAP
can payorder be issued for outstation?if yes then how?should it be account payee?
What is the complete role of a Process executive in Accounts Payable Process ? Please anyone who is an expert in the process answer my question. A reply would help me a lot.
