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GK MCQs Section
Q. What is the Bank Rate in relation to RBI and commercial banks?
Answer: RBI lends long-term loans to banks without requiring collateral or repurchase agreement
Notes: The Bank Rate is the interest rate at which the Reserve Bank of India lends long-term funds to commercial banks without any collateral or repurchase agreement. The RBI notifies the Bank Rate, and it is generally above the Repo Rate. The Bank Rate has been used by RBI since the Reserve Bank of India Act, 1934, to manage liquidity and regulate money supply.
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