1.

What is repo rate?

Answer»

Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. The lending here is overnight lending.  If a bank needs money in short span of time, it contacts RBI and asks for overnight lending. RBI lends the bank the required fund at an interest rate called REPO RATE.



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