What Is A Repo Rate?

1.	What Is A Repo Rate?
Answer» REPO rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of FUNDS they can borrow it from RBI. A reduction in the repo rate will HELP banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more EXPENSIVE. Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive.

Answer»

REPO rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of FUNDS they can borrow it from RBI. A reduction in the repo rate will HELP banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more EXPENSIVE.

Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive.

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