repo rate

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SkSain

SkSain (Querist)
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17 June 2011 What is the repo rate ?

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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17 June 2011 The banks which borrow money from RBI to meet short term needs of the banks. However the bank have sell their bonds to RBI to get this money for their needs. The interest rate that is charged by the RBI to banks for the amount lend to banks is called as Repo Rate.

Now the repo rate is around 7.25 to 7.50

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CA M Sreenivasa Rao
R&S Associates

Rajan Kapoor

Rajan Kapoor (Expert)
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17 June 2011 Loan given by RBI to banks: Rate of interest which is charged by RBI to banks is called Repo Rate.

Loan Received by RBI from banks: Rate of interest which is paid by RBI to banks is called Reverse Repo Rate.