Under which of the following rates, the banks avail long term loans from Reserve Bank of India (RBI) by putting no collateral securities?
Under which of the following rates, the banks avail long term loans from Reserve Bank of India (RBI) by putting no collateral securities?
[A]Bank rate
[B]Repo rate
[C]Reserve repo rate
[D]Marginal Standing Facily
Bank rate The bank rate (or discount rate) is the rate of interest at which banks take long term loans from Reserve Bank of India (RBI) by putting no collateral security. It is the rate at which RBI rediscounts the bills of exchange and government securities held by the commercial banks. For controlling the credit, inflation and money supply, RBI increases the bank rate.