What is Repo Rate and Reverse Repo Rate
Repo Rate
1 : It is rate at which RBI lends money to bank
2 : It is higher than the Reverse Repo Rate
3 : It is used to control inflation and deficiency of funds
Reverse Repo Rate
1 : It is the rate at which RBI barrow's money from banks
2 : It is lower than the Repo Rate
3 : It is used to manage cash-flow
Thank you for simple and clear information
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