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what is repo rate?
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Answer Posted / ganesan.p
Whenever the scheduled commercial banks in Indi face the
shortage of funds, that time the commercial banks tend to
borrow the money from the RBI. The Repo rate which is
defined that the rate of the RBI fixed to its cliends
(Commercial Banks) as a interest rate. According to this
rate the commercial banks are tend to borrow the money from
the RBI. Incase of the REPO rate will increase, the lending
rates of commercial banks are also increased.
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