What is Reverse Repo Rate?

Sharad Jaiswal
Sharad Jaiswal

Posted On: Mar 18, 2020

 

It the rate at which the central bank of a nation borrows money from commercial banks within a country. Commercial banks get an interest in their money deposit from the central bank. This rate is used to control the money supply within a country. This is dome to reduce the overall supply of money in the economy. In India, the RBI (Reserve Bank of India) is the central bank with a Reverse Repo Rate of 4.90 percent.

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