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.
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Comments
Anonymous
good……..
Anonymous
very nicely explained
M.N.Pathak
Very nicely explained.
a
nice information
jamna rawat
good work
rock
Gr8, its very useful !!
sarika
please see
Gagan
Thanks
kittu
its superb and is useful for all exams
kapil jindal
exellent & most useful for all competitive exams
akhil
plz update
swapnil
diagram se explain karo yaar
kailash sharma
nice information…..thanks
kashish
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Indrajeet Dhawal
Excellent…..
A complete package of study materials to struck any competitive…..
Like this..
pratima sharma
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Anil
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.
Santosh Kambale
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…
neha
yeah… i always had a doubt of bank and repo rate.. bt now it is cleared!
nagendra kumar
Sir,thaks for it because I am very confused in that term but you clear it.
anshu
Thank u sir for such a good information ds gave very clear information about repo rate
priyanka
very relevant n to d point information….
vicky
nice job dud keep it up….
Skv
Good, thank u
farha khan
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kulamani bastia
very nice explained it.
pallavi
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syedrafi
repo rate 8.25
reverse repo rate 7.25
balachander.v
The answers are too good and very useful. Can I have a copy of all the questions and answers of the banking current affairs.
balachander.v
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
preksha
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
.
preksha
do reply as soon as possible,anyone know the answer
Nagaraj Naikar
Very nice work. Light for Bank PO aspirants
chandu
its very nice..it will more help to students
rajendra vibhande
good information
shweta singh
plz send me table of current ratas.like repo rate etc.
Ashutosh Upadhyay
current repo rate is………….7.75%to7.50%
khemraj
Thanks a lot! It is very helpful to me.
v p singh
now i can differenciate between repo and bate rate .. after a very long time..
shadab
now i don’t have any confusion related to this topic……thanks a lot
Ajeet uikey
Very good information
Vikash Sinha
Its realy nice information.for any compitative exam
kiran
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vikash ojha
really very relevant information on repo, bank and revres repo rates….very nice information and to the point…good job.
Pintu nayak
Thanxxxxxx,,,,n,,,grt infrmation,,,,,
srinivas
nice information thanku so much
vishal srivastava
No Doubt the definition of Repo Rate has been crystally cleared.
Thanks
Rohit
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!!!!
Chandan Singh
Thanks for such a valuable article i wish it would better if there would example to explain bank rate and repo rate……
rahul choudhary
realy a very good site for various compititive exams
anu bajaj
clearly explained.
Umesh Kesavan
superb work
Gaurav
very good site …..nice explanations…keep it up..
vikas panwar
nice data collecttion site all student easier to search all types usefull data
dinesh paliwal
now the repo rate is :-7.75
rev.repo:-6.75
crr :-4
bank rate:-8.75
msf :-8.75
slr :-23
sandeep
thank to providing these important information
Sonika parihar
Nce information
yashi
thanks for such a nice explanation,really very usefull to us
sharad pansare
gr8,tnx 4 that…
shubham
what is the minimum and maximum time duration of repo rate….
Raghavendra
Ossamm……………….
Sameer
please upgrade this information
Saroj
Realy a very good site site for various compitive exams.
Regards.
Saroj
K.SUKUMARI
very useful to us realy a very good site
smart1
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.
Bhuvana
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