Question

Difference between repo rate and reverse repo rate

Answer 1

Answer:

The significant difference between the Repo Rate and Reverse Repo Rate is that Repo Rate is the interest rate at which the commercial banks borrow loans from RBI, while Reverse Repo Rate is the rate at which the RBI borrows loan from the commercial banks. The Repo Rate is always higher than the Reverse Repo Rate

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