Question

The rate at the discounting first class bills of banks is done by rbi is called

Answer 1

Bank Rate. It is defined in Sec 49 ofRBI Act of 1934 as the 'standard rateat which RBI is prepared to buy or rediscount bills of exchange or other commercial papers eligible for purchase'. When banks want to borrow long term funds from RBI, it is the interest rate which RBI charges to them.

Answer 2

Bank Rate. It is defined in Sec 49 ofRBI Act of 1934 as the 'standard rateat which RBI is prepared to buy or rediscount bills of exchange or other commercial papers eligible for purchase'. When banks want to borrow long term funds from RBI, it is the interest rate which RBI charges to them.