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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Anonymous
December 22, 2010 at 8:55 amgood……..
Anonymous
March 8, 2011 at 10:58 amvery nicely explained
M.N.Pathak
June 14, 2014 at 1:49 pmVery nicely explained.
a
May 11, 2011 at 6:27 pmnice information
jamna rawat
June 8, 2011 at 4:41 pmgood work
rock
July 13, 2011 at 11:03 pmGr8, its very useful !!
sarika
July 16, 2011 at 9:24 pmplease see
Gagan
July 20, 2011 at 2:47 pmThanks
kittu
July 22, 2011 at 9:31 pmits superb and is useful for all exams
kapil jindal
July 24, 2011 at 7:07 amexellent & most useful for all competitive exams
akhil
July 28, 2011 at 7:52 amplz update
swapnil
July 28, 2011 at 11:56 amdiagram se explain karo yaar
kailash sharma
August 2, 2011 at 2:52 pmnice information…..thanks
kashish
August 3, 2011 at 12:58 amvery nicely explained…thanks !
Indrajeet Dhawal
August 4, 2011 at 10:14 amExcellent…..
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Like this..
pratima sharma
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Anil
August 9, 2011 at 6:37 pmThank 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
August 10, 2011 at 12:46 pmSir 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
August 23, 2011 at 11:35 amyeah… i always had a doubt of bank and repo rate.. bt now it is cleared!
nagendra kumar
August 28, 2011 at 8:01 pmSir,thaks for it because I am very confused in that term but you clear it.
anshu
August 30, 2011 at 12:13 amThank u sir for such a good information ds gave very clear information about repo rate
priyanka
September 7, 2011 at 5:53 pmvery relevant n to d point information….
vicky
September 9, 2011 at 10:21 amnice job dud keep it up….
Skv
September 13, 2011 at 4:02 pmGood, thank u
farha khan
September 18, 2011 at 9:41 amwonderful site,very useful for competitive exams!! thanks a lottttt!!!!!!!!!
kulamani bastia
September 27, 2011 at 4:28 pmvery nice explained it.
pallavi
September 30, 2011 at 4:44 pmits a very wonderful site for competitive exams.it provides nice information and my all doubts are cleared here.thanks a lot……………..
syedrafi
October 5, 2011 at 12:35 pmrepo rate 8.25
reverse repo rate 7.25
balachander.v
October 10, 2011 at 11:53 pmThe 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
October 10, 2011 at 11:55 pmThe 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
October 12, 2011 at 8:41 pmthnx 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
October 15, 2011 at 12:08 pmdo reply as soon as possible,anyone know the answer
Nagaraj Naikar
October 21, 2011 at 11:31 pmVery nice work. Light for Bank PO aspirants
chandu
November 3, 2011 at 6:19 pmits very nice..it will more help to students
rajendra vibhande
November 8, 2011 at 6:46 pmgood information
shweta singh
November 23, 2011 at 6:26 pmplz send me table of current ratas.like repo rate etc.
Ashutosh Upadhyay
November 14, 2014 at 10:54 amcurrent repo rate is………….7.75%to7.50%
khemraj
December 10, 2011 at 8:26 pmThanks a lot! It is very helpful to me.
v p singh
December 17, 2011 at 5:44 pmnow i can differenciate between repo and bate rate .. after a very long time..
shadab
January 18, 2012 at 6:30 pmnow i don’t have any confusion related to this topic……thanks a lot
Ajeet uikey
January 22, 2012 at 6:25 pmVery good information
Vikash Sinha
February 2, 2012 at 2:37 pmIts realy nice information.for any compitative exam
kiran
February 3, 2012 at 11:23 pmit’s awesome website i never seen like this one… u r doing great job for competetive aspirants…
vikash ojha
February 6, 2012 at 3:40 pmreally very relevant information on repo, bank and revres repo rates….very nice information and to the point…good job.
Pintu nayak
February 21, 2012 at 6:36 pmThanxxxxxx,,,,n,,,grt infrmation,,,,,
srinivas
February 22, 2012 at 11:53 amnice information thanku so much
vishal srivastava
February 25, 2012 at 10:26 amNo Doubt the definition of Repo Rate has been crystally cleared.
Thanks
Rohit
March 6, 2012 at 6:09 pmbahut 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
March 7, 2012 at 9:59 pmThanks for such a valuable article i wish it would better if there would example to explain bank rate and repo rate……
rahul choudhary
March 17, 2012 at 12:17 pmrealy a very good site for various compititive exams
anu bajaj
April 9, 2012 at 10:38 amclearly explained.
Umesh Kesavan
May 16, 2012 at 8:09 pmsuperb work
Gaurav
May 22, 2012 at 12:03 amvery good site …..nice explanations…keep it up..
vikas panwar
October 20, 2012 at 7:45 pmnice data collecttion site all student easier to search all types usefull data
dinesh paliwal
January 29, 2013 at 4:07 pmnow the repo rate is :-7.75
rev.repo:-6.75
crr :-4
bank rate:-8.75
msf :-8.75
slr :-23
sandeep
January 30, 2013 at 1:14 pmthank to providing these important information
Sonika parihar
February 4, 2013 at 8:27 pmNce information
yashi
February 10, 2013 at 1:53 pmthanks for such a nice explanation,really very usefull to us
sharad pansare
February 12, 2013 at 12:17 pmgr8,tnx 4 that…
shubham
February 18, 2013 at 9:47 pmwhat is the minimum and maximum time duration of repo rate….
Raghavendra
March 19, 2013 at 10:55 pmOssamm……………….
Sameer
March 21, 2013 at 2:41 amplease upgrade this information
Saroj
April 8, 2013 at 4:59 amRealy a very good site site for various compitive exams.
Regards.
Saroj
K.SUKUMARI
June 25, 2013 at 5:26 pmvery useful to us realy a very good site
smart1
August 10, 2013 at 12:29 pmThe 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
May 13, 2014 at 2:33 pmwhether repo rate is at the rate it repurchase the gvt bonds or the rate at which bank has to pay interest to the RBI