DESICION OF RBI

WHAT IS EXACTLY REPORATE?I DOHAVE THE BASIC KNOWLEDGE BUT I WANNA  THE FACTORS AFFECTING REPORATE  EXPLAIN ME IN DETAIL

Replies (1)
Repo and Reverse Repo are tools available in the hands of 
RBI to manage the liquidity in the system. It either 
injects liquidity into the market if the conditions are 
tight or sucks out liquidity if the liquidity is excess in 
the system through the Repo and Reverse Repo mechanism, 
besides a host of other measures.

Now in REPO RBI injects liquidity into the system i.e. it 
purchases the securities from the banks and lends money to 
them to ease their liquidity crunch. The rate charged by it 
for lending money is the REPO rate.

Reverse REPO is the opposite of REPO: When liquidity is 
excess in the system. RBI sucks it out by Reverse REPO by 
lending securities and taking out money from banks. The 
rate charged for it is the Reverse Repo rate. 
These rates, form the bottom and the top of the Call money 
lending/borrowing of the banks. The call money rates 
generally fall in between this corridor.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details