through this rbi controls inflation and deflation.
Repo rate is 7.25 reverse Repo is 6.25
REPURCHASE RATE IS ALSO KNOWN AS REPO RATE Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees 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.
RBI
Repo rate is the rate at which rbi lends money or other securities to other banks.
through this rbi controls inflation and deflation.
Repo rate is 7.25 reverse Repo is 6.25
the Repo rate, Reserve repo rate and CRR as of 03 January 2009 are as follows: Repo Rate: 5.6% CRR: 5% Reverse Repo rate: 4.1% Source: RBI
REPURCHASE RATE IS ALSO KNOWN AS REPO RATE Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees 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.
RBI
Repo rate is the rate at which RBI lends money to scheduled banks. Its also called Repurchase rate. Reverse Repo Rate is the rate at which RBI borrows money from banks.
reverse repo rate..
reverse repo rate..
Repo rate is the rate at which rbi lends money or other securities to other banks.
Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees 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. The rate charged by RBI for its Repo operations is 5.75% and Reverse Repo rate is 3.25%. When RBI lends money to bankers against approved securities for meeting their day to day requirements or to fill short term gap.It takes approved securities as securityand lends money.These types of operations are generally for overnight operations. ======================== Updating today-27th of March 2010-for ur SBI clerk interview. ------------------------------------------------------------------------------ The Reserve Bank of India (RBI) has hiked the repo and reverse repo rate by 25 basis points (100 bps=1%). The new repo and reverse repo rate is 5% and 3.5%, respectively. The hike comes into effect immediately.
Repo is like a repurchase agreement.The rate at which RBI sells securities to bank. But, bank rate is the rate by which RBI lends money to commercial banks. Annu Prakash
Because a central bank is more secured place to lend money than any bank... Therefore when RBI lends money to banks i.e Repo is less secured than Any bank parking its funds with RBI.. i.e is Reverse Repo.