With respect to banking system in India, which of the following statements is/are correct?

  1. Base rate is the minimum interest rate, at which Commercial banks charge their customers on loans borrowed.
  2. Bank rate is the rate at which RBI gives loans to Commercial banks for longer period of time.

Select the correct option from the codes given below:

Answer: [C] Both 1 & 2

Both 1 & 2 are correct statements. 

This question is a part of GKToday's Integrated IAS General Studies Module