Current Repo Rate

Repo Rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate. If the RBI wants to make it more expensive for banks to borrow money, it increases the repo rate. Similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.
Please note that Bank Rate and Repo Rate seem to be similar terms because in both of them RBI lends to the banks. However, Repo Rate is a short-term measure and it refers to short-term loans and used for controlling the amount of money in the market, Bank Rate is a long-term measure and is governed by the long-term monetary policies of the RBI. In broader term, bank rate is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. RBI uses this tool to control the money supply.

How Repo Rate Works?

When RBI reduces the Repo Rate, the banks can borrow more at a lower cost. This contributes to lowering of the rates. The effects can be seen on the markets in short term.

[table id=78 /]

66 Comments

  1. Anonymous

    December 22, 2010 at 8:55 am

    good……..

  2. Anonymous

    March 8, 2011 at 10:58 am

    very nicely explained

  3. a

    May 11, 2011 at 6:27 pm

    nice information

  4. jamna rawat

    June 8, 2011 at 4:41 pm

    good work

  5. rock

    July 13, 2011 at 11:03 pm

    Gr8, its very useful !!

  6. sarika

    July 16, 2011 at 9:24 pm

    please see

  7. Gagan

    July 20, 2011 at 2:47 pm

    Thanks

  8. kittu

    July 22, 2011 at 9:31 pm

    its superb and is useful for all exams

  9. kapil jindal

    July 24, 2011 at 7:07 am

    exellent & most useful for all competitive exams

  10. akhil

    July 28, 2011 at 7:52 am

    plz update

  11. swapnil

    July 28, 2011 at 11:56 am

    diagram se explain karo yaar

  12. kailash sharma

    August 2, 2011 at 2:52 pm

    nice information…..thanks

  13. kashish

    August 3, 2011 at 12:58 am

    very nicely explained…thanks !

  14. Indrajeet Dhawal

    August 4, 2011 at 10:14 am

    Excellent…..
    A complete package of study materials to struck any competitive…..
    Like this..

  15. pratima sharma

    August 4, 2011 at 2:04 pm

    u r doing GREAT! and thanks a lot.keep it up.

  16. Anil

    August 9, 2011 at 6:37 pm

    Thank you very much for the information.

    Maintaining the data and graphs is really great.

    We are not able to copy some part of information for print.

    Anyway Good work.

  17. Santosh Kambale

    August 10, 2011 at 12:46 pm

    Sir you are doing a great job. First Of all thanks a lot to you. This is very helpful who wants to crack the IAS Exam and Other Competative Exam…

  18. neha

    August 23, 2011 at 11:35 am

    yeah… i always had a doubt of bank and repo rate.. bt now it is cleared!

  19. nagendra kumar

    August 28, 2011 at 8:01 pm

    Sir,thaks for it because I am very confused in that term but you clear it.

  20. anshu

    August 30, 2011 at 12:13 am

    Thank u sir for such a good information ds gave very clear information about repo rate

  21. priyanka

    September 7, 2011 at 5:53 pm

    very relevant n to d point information….

  22. vicky

    September 9, 2011 at 10:21 am

    nice job dud keep it up….

  23. Skv

    September 13, 2011 at 4:02 pm

    Good, thank u

  24. farha khan

    September 18, 2011 at 9:41 am

    wonderful site,very useful for competitive exams!! thanks a lottttt!!!!!!!!!

  25. kulamani bastia

    September 27, 2011 at 4:28 pm

    very nice explained it.

  26. pallavi

    September 30, 2011 at 4:44 pm

    its a very wonderful site for competitive exams.it provides nice information and my all doubts are cleared here.thanks a lot……………..

  27. syedrafi

    October 5, 2011 at 12:35 pm

    repo rate 8.25
    reverse repo rate 7.25

  28. balachander.v

    October 10, 2011 at 11:53 pm

    The answers are too good and very useful. Can I have a copy of all the questions and answers of the banking current affairs.

  29. balachander.v

    October 10, 2011 at 11:55 pm

    The questions and answers are apt and very good. Can I have a copy of all the question and answers of the banking current affairs, please

  30. preksha

    October 12, 2011 at 8:41 pm

    thnx for sharing such useful info but can u tell me under bank rate and repo rate duration of loan provided by RBI to banks
    bank rate: greater than one year or 90 days.
    repo rate:1 to 14 days or till 90 days
    .

  31. preksha

    October 15, 2011 at 12:08 pm

    do reply as soon as possible,anyone know the answer

  32. Nagaraj Naikar

    October 21, 2011 at 11:31 pm

    Very nice work. Light for Bank PO aspirants

  33. chandu

    November 3, 2011 at 6:19 pm

    its very nice..it will more help to students

  34. rajendra vibhande

    November 8, 2011 at 6:46 pm

    good information

  35. shweta singh

    November 23, 2011 at 6:26 pm

    plz send me table of current ratas.like repo rate etc.

    • Ashutosh Upadhyay

      November 14, 2014 at 10:54 am

      current repo rate is………….7.75%to7.50%

  36. khemraj

    December 10, 2011 at 8:26 pm

    Thanks a lot! It is very helpful to me.

  37. v p singh

    December 17, 2011 at 5:44 pm

    now i can differenciate between repo and bate rate .. after a very long time..

  38. shadab

    January 18, 2012 at 6:30 pm

    now i don’t have any confusion related to this topic……thanks a lot

  39. Ajeet uikey

    January 22, 2012 at 6:25 pm

    Very good information

  40. Vikash Sinha

    February 2, 2012 at 2:37 pm

    Its realy nice information.for any compitative exam

  41. kiran

    February 3, 2012 at 11:23 pm

    it’s awesome website i never seen like this one… u r doing great job for competetive aspirants…

  42. vikash ojha

    February 6, 2012 at 3:40 pm

    really very relevant information on repo, bank and revres repo rates….very nice information and to the point…good job.

  43. Pintu nayak

    February 21, 2012 at 6:36 pm

    Thanxxxxxx,,,,n,,,grt infrmation,,,,,

  44. srinivas

    February 22, 2012 at 11:53 am

    nice information thanku so much

  45. vishal srivastava

    February 25, 2012 at 10:26 am

    No Doubt the definition of Repo Rate has been crystally cleared.
    Thanks

  46. Rohit

    March 6, 2012 at 6:09 pm

    bahut tagdi site hai yr fr banking preparation ….but i got last time when paper is on my head….thanks for it…keep it up!!!!

  47. Chandan Singh

    March 7, 2012 at 9:59 pm

    Thanks for such a valuable article i wish it would better if there would example to explain bank rate and repo rate……

  48. rahul choudhary

    March 17, 2012 at 12:17 pm

    realy a very good site for various compititive exams

  49. anu bajaj

    April 9, 2012 at 10:38 am

    clearly explained.

  50. Umesh Kesavan

    May 16, 2012 at 8:09 pm

    superb work

  51. Gaurav

    May 22, 2012 at 12:03 am

    very good site …..nice explanations…keep it up..

  52. vikas panwar

    October 20, 2012 at 7:45 pm

    nice data collecttion site all student easier to search all types usefull data

  53. dinesh paliwal

    January 29, 2013 at 4:07 pm

    now the repo rate is :-7.75
    rev.repo:-6.75
    crr :-4
    bank rate:-8.75
    msf :-8.75
    slr :-23

  54. sandeep

    January 30, 2013 at 1:14 pm

    thank to providing these important information

  55. Sonika parihar

    February 4, 2013 at 8:27 pm

    Nce information

  56. yashi

    February 10, 2013 at 1:53 pm

    thanks for such a nice explanation,really very usefull to us

  57. sharad pansare

    February 12, 2013 at 12:17 pm

    gr8,tnx 4 that…

  58. shubham

    February 18, 2013 at 9:47 pm

    what is the minimum and maximum time duration of repo rate….

  59. Raghavendra

    March 19, 2013 at 10:55 pm

    Ossamm……………….

  60. Sameer

    March 21, 2013 at 2:41 am

    please upgrade this information

  61. Saroj

    April 8, 2013 at 4:59 am

    Realy a very good site site for various compitive exams.

    Regards.
    Saroj

  62. K.SUKUMARI

    June 25, 2013 at 5:26 pm

    very useful to us realy a very good site

  63. smart1

    August 10, 2013 at 12:29 pm

    The Reserve Bank of India (RBI) kept interest rates unchanged on Monday after cutting them in each of its previous three policy reviews, warning of upward risks to inflation posed by a falling rupee and increases in food prices.

    The RBI also called for vigilance over global economic uncertainty, citing the risks of a reversal of capital flows from emerging markets. Such outflows would exacerbate the country’s high current account deficit.
    Following are highlights from the monetary policy statement:

    Policy Measures
    Keeps repo rate unchanged at 7.25 percent.
    Reverse repo rate stays at 6.25 percent.
    Cash reserve ratio unchanged at 4.00 percent.
    Marginal Standing Facility rate stays at 8.25 percent.
    Bank rate stays at 8.25 percent.

  64. Bhuvana

    May 13, 2014 at 2:33 pm

    whether repo rate is at the rate it repurchase the gvt bonds or the rate at which bank has to pay interest to the RBI

Leave a Reply to nagendra kumar Cancel reply