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can any on plz let me knw wat is rivarse repo rate ?
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Answer Posted / 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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