We all know RBI is central bank.... when other banks land money from this bank....
Repo rate is the rate decided by RBI Reserve Bank of India the central bank to provide another banks money in some value....
In the event of short fall of funds... RBI lends money to the banks. Atleaste once in between every three month RBI increase or decrease their interest rate... every bank need prodigous amount of money. Bank pay the interest to RBI set by RBI Is called repo rate.....
Repo rate is the rate decided by RBI Reserve Bank of India the central bank to provide another banks money in some value....
In the event of short fall of funds... RBI lends money to the banks. Atleaste once in between every three month RBI increase or decrease their interest rate... every bank need prodigous amount of money. Bank pay the interest to RBI set by RBI Is called repo rate.....
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