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what is repo rate?
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Answer Posted / deepak goyal
Repo 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.
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