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What Is Term Repo? |
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Answer» Under TERM repo, RBI lends to banks through auction of FUNDS. The MINIMUM interest charged has to be above the repo RATE and there is no limit for maximum interest rate because auction is made on the rate of interest. Under term repo, RBI lends to banks through auction of funds. The minimum interest charged has to be above the repo rate and there is no limit for maximum interest rate because auction is made on the rate of interest. |
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