05 May 2011
Repo rate is the rate at which RBI lends money to Scheduled banks. Reverse repo rate is the rate at which RBI borrows money from Banks.
currently, repo is increased to 7.25% from 6.75% & Reverse repo is increased from 5.75% to 6.25%...so RBI takes interest at 7.25% and gives interest 6.25% to banks for deposits with rbi....
05 May 2011
Thanks for the reply sir...please temme what is the difference between repo rate and bank rate?? just that repo rate is specifically for schedule banks?
CAclubindia
