Question

Define ....Bank rate and repo rate...

Answer 1

Heya...

Bank rate....

Bank rate relates to the loans rate offered by RBI to the commercial banks without any collateral....
It is simply the rate of discount...

Repo rate.....

Repo rate related to the loan rate offered by RBI to commercial banks with collaterals....
It is simply called repurchase rate...

Answer 2

Bank rate. ... Whenever a bank has a shortage of funds, they can typically borrow from the central bank based on the monetary policy of the country. The borrowing is commonly done via
repo rate: the repo rate is the rate at which the central bank lends short-term money to the banks against securities.