Economy, asked by arunsainiarun1002, 1 year ago

What is meant by Reverse Repo Rate?

Answers

Answered by TheEmma
15
rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country is called reverse repo rate.

hope it helps
Answered by aqibkincsem
2

Reverse repo rate is the rate using which central bank in a country borrows funds from the commercial banks present in the same country.

This is an instrument of monetary policy which the central bank use for controlling the supply of money in the country.

Any enhancement in this rate decreases the supply of money and vice versa keeping other things as constant.

So commercial banks will get more initiatives to lend the central bank funds and thus decline money supply in the nation.

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