REPO RAtE
This query is : Resolved
05 May 2011
What is repo rate and reverse repo rate..please explain...thankssssssssss
CA Amit Talada
(Expert)
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....
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....
Message likes :
1 times
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?
05 May 2011
( Humour )
It seems right now you are studying -
STRUGGLING FIGHTING MANAGEMENT ( SFM ).
.
Bank Rate is a short term finance to commercial banks by RBI.
.
The banks are required to alter their deposit rates in line with the Bank Rate.
.
Repo Rate is also a rate decided by RBI for short term finance to banks which is based on present economic factors.
.
Both look similar but Deposit Rates change when Bank Rate Changes. In Repo-Rate it is not so.
.
Bank Rate is a prime lending rate.
.
Repo-rate is not prime lending rate.
It seems right now you are studying -
STRUGGLING FIGHTING MANAGEMENT ( SFM ).
.
Bank Rate is a short term finance to commercial banks by RBI.
.
The banks are required to alter their deposit rates in line with the Bank Rate.
.
Repo Rate is also a rate decided by RBI for short term finance to banks which is based on present economic factors.
.
Both look similar but Deposit Rates change when Bank Rate Changes. In Repo-Rate it is not so.
.
Bank Rate is a prime lending rate.
.
Repo-rate is not prime lending rate.
Message likes :
1 times
06 May 2011
Thank u sir...
Please throw a bit if more light on the difference between bank rate and repo rate...
Please throw a bit if more light on the difference between bank rate and repo rate...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- Working on Gold wastage during Melting of old gold jewellery
- GSTR-9C filing
- TDS on Dashcam rent and allied services
- Import Order Cancelled.
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Form 144 TDS Return Validation Error – Mandatory Fields
- Capital gains in IT returns
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
