Question

Difference between repo rate and reserve repo rate

Answer 1

repo rate is the rate at which Central Bank lend fund to commercial bank for short period of time while reverse repo rate is the rate at which commercial bank lend fund to RBI

Answer 2

Explanation:

repo rate is concerned with short term lending by Central Bank to commercial bank and it is governed by the short-term interest ratewall paint rate is applicable to long term lending by the central bank and commercial bank and it is governed by long-term interest rate