Question

Repo ret
Rivars repo ret
Sodhi so me % ma​

Answer 1

Answer:

The Repo rate and Reverse repo rate has been described below :

Repo rate or repurchase rate, is a rate of interest at which RBI lends to the commercial bank for short period. This is done by RBI by buying Government bonds from commercial banks with an agreement to sell them back at a fixed rate. The rate is  35 basis points to 5.4%.

Reverse repo rate is the rate of interest at which the RBI borrows from commercial banks for short period. This is done by selling government bond to the bank. Bank utilises the reverse repo rate facilities to deposit their short term excess funds with the RBI and earns interest on it. The rate is reduce by 25 basis points stands at 18.75%.