Current Reverse Repo Rate

On March 20, 2013, RBI has lowered Repo Rate by 25 basis points from 7.75% to 7.50%. The objective is ease pressure on the reviving economy. Accordingly, the Reverse Repo Rate under the Liquidity Adjustment Facility (LAF), which is determined with a spread of 100 basis points below the repo rate, has got calibrated to 6.50%.
At the same time, the Marginal Standing Facility (MSF) rate, which is determined with a spread of 100 basis points above the repo rate is adjusted to 8.50%.

Reverse repo rate is the rate of interest at which the RBI borrows funds from other banks in the short term . This is done by RBI selling government bonds / securities to banks with the commitment to buy them back at a future date. The banks use the reverse repo facility to deposit their short-term excess funds with the RBI and earn interest on it. RBI can reduce liquidity in the banking system by increasing the rate at which it borrows from banks. Hiking the repo and reverse repo rate ends up reducing the liquidity and pushes up interest rates.
How Reverse Repo Rate Works?
When the RBI increases the Reverse Repo, it means that now the RBI will provide extra interest on the money which it borrows from the banks. An increase in reverse repo rate means that banks earn higher returns by lending to RBI. This indicates a hike in the deposit rates.

Advertisement

Comments

  • Anonymous
    Reply

    I found this wonderful site right now & 'm really very impressed.You are doing a great service to say the least.Thanks & keep it up.

  • Anonymous
    Reply

    hi dear,
    it is been a great job from your end.keep going

  • Anonymous
    Reply

    a gr8 information site...

  • Anonymous
    Reply

    now i am satisfied with this site . thanks ...

  • Anonymous
    Reply

    i found it the most knowledgeable site on explaining economic terms.
    thanx to ur all team members for such a nice job..

  • Anonymous
    Reply

    hi...
    its very useful
    pls update the details regularly

    thankyou so much

  • monikasingh
    Reply

    pi.also mention the answerof the question of quiz thatyou forward to your subscriber.

  • a
    Reply

    fanatastic work

  • prateek tyagi
    Reply

    good work..thanks for the person who did this good work

  • amrik singh
    Reply

    current repo rate at present is 8% w e f 27.7.2011

  • rajesh
    Reply

    the person who is doing this is really

    great great ............man.such generous people are need of the our

  • Niketa
    Reply

    such a useful detail u r providing us.It really would be useful for increasing banking knowledge....... keep going

  • varadaiah ragam
    Reply

    No words to say,
    what a pentastic job u done ,
    hats off....... thanks for providing very very usefull material,
    .......... * varada *

  • Samrita Singh
    Reply

    Amazing work, the material is extremelu useful and is displayed in a concise manner..... Thank a lot!!!! Truly great work!!!!

  • saranya
    Reply

    Thanks for providing very useful information..Great work man...keep going..ur really rocking no words to say,..

  • Krupa Katira
    Reply

    Truly useful info.......
    Thanks a lot...........

  • ncfanin
    Reply

    thanks for providng information in simple and clear way.

  • mmis
    Reply

    Thanx for helping us..........

  • arjun
    Reply

    thanks for ur material, this is very useful..

  • deepika mahatha
    Reply

    thanks fr discribe it......bt i want to knw about reverse repo ?

  • Kapil Trivedi
    Reply

    Good information Thankx. for good affert

  • Prashant Kevre
    Reply

    Amazing way to share knowledge.
    I am really impressed .
    Thankyou very much.
    keep up the good work..

  • ronak
    Reply

    thanx a lot ....

  • vandana
    Reply

    this is a wonderful site. everyone can find a lots of important information. really its very good n useful site.

  • mike
    Reply

    hats off to you ...amazing site and it shows you work a lot to make this site awesome....thumsup

  • amit pandey
    Reply

    this is very helpful site for the improvement of all competitive exam ....i am very great full to the the the whole people ,those are working for this site

    thanks to all of u for making knlegable site

  • subhasmita
    Reply

    this site is very much impressing.
    thanks to those who are working under this..

  • Bimal
    Reply

    This Sep u haven't updated. Please maintain d consistency.

  • Bimal
    Reply

    Thnx abt the other works bt pls maintain it.

  • sudha
    Reply

    Hi,
    First, thanx 2 ur team. I prepared to my PO exam only from this site(GK -part),It is very useful. I would like to say about the awards part of this site. I hope this part of GK need more effort.

  • ABHIJIT MISHRA
    Reply

    This side is really helpful for my study life. Thank you for this helpful work.....................................................................

  • bhai
    Reply

    why is that current affairs for september
    not yet posted?there's only 2 topics for the month of september.when it is going to be updated day-wise like all the previous months.
    thanks.

  • shweta bisht
    Reply

    i was worried about the banking knowledge,thnks to your site giving the knowledge in a very easy language...very nice thanks

  • manish
    Reply

    its nice for competitor student

  • prateek
    Reply

    very useful site..thanks for maintaining it so well admin.

  • jeet
    Reply

    good and very useful site..........
    thanks.

  • Girraj
    Reply

    THIS IS SO USE FULL THANK YOU SO MUCH......

  • megha
    Reply

    realy heplful for competitive xams

  • pradeep
    Reply

    It is an outstanding site which give day to day update ....awesome

  • anu
    Reply

    really good.....

  • hema joshi
    Reply

    this is really very nice data..u guys are doin a gud job....keep it up.....

  • priyanka vaswani
    Reply

    very knowlegeble site and all update information we get from it

  • alok ranjan rai
    Reply

    hi... can anybody plz tell me how to start with this site for economy purpose. i am unable to catch the starting point. in short plz tell how to make full use of this useful site. thanx.

  • ananimos
    Reply

    well done

  • MANISH
    Reply

    THIS IS VERY GOOD FOR JOB THANKS FOR WEBSITE

  • rahul.dhargave
    Reply

    good work folk. Site is really knowledgeable. Thank you...

  • avinash
    Reply

    what an useful details u have providing.... thanks a lot that helps me more.............

  • surbhi agrawal
    Reply

    large piece of information is provided in tit bits and crisp mannner..thanks for ur efforts
    bring it on...

  • deepthi
    Reply

    thanks a lot..this site is really nice.

  • sukhbir
    Reply

    providing information in simple and easy words,
    you are the biggest contributor in my preparation for ssc . Thanks a lot

  • vinita
    Reply

    short but very imp information.....good job

  • Nikhil khandelwal
    Reply

    it is so important for me. now i can answer for rr and re rr rate by rbi. thanks

  • srinivas
    Reply

    I am not good in financial aspects. You guys are doing a good job in spreading awareness of all topics.

  • F3AR
    Reply

    This is the best GK site... :D :D

  • sandeep
    Reply

    much needed site to prepare for the comprtative exams especially for banking exams..

  • deepika
    Reply

    really doing great job.i thimk it will be best gk book for prepration of competitive exam.

  • SKB
    Reply

    Graphics with date-wise details rate....Excellent

  • ramaswamy2m
    Reply

    great information

  • CJ
    Reply

    great info... really very helpful... a million thanx to the gktoday team...

  • srinivas
    Reply

    finally i got the good site, it is awesome, really its a great job

  • kapil
    Reply

    Awesome help man...you are working in a very nice way...excellent work

  • charan
    Reply

    Suprub

  • chitra
    Reply

    thanks.....a lot!