Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive
Posts
Comment Policy : We invite you to comment on our posts, as long as they are respectful, to the point and approving. We do not perform pre-moderation of comments. However, in order to keep this site clean and useful, we reserve the right to remove any comment that is not in accordance with our Comment Policy.