Question

What is the current repo rate, as per RBI’s 6th bi-monthly monetary policy statement for 2018-19?
A. 0.06
B. 0.0675
C. 0.065
D. 0.0625

Answer 1

The answer is (D) - 0.0625 or 6.25%.

Repo rate or repurchase rate is the rate at which Reserve Bank of India (RBI) lends to banks for short periods. The entire mechanism is orchestrated with RBI buying government bonds from banks and agreeing to sell them back at a predetermined rate.