BANKING AFFAIRS

Detailed explanation-1: -Repo rate is the rate by which the central bank gives loans to the commercial banks. Thus, banks borrow money from Reserve Bank Of India by Repo rate.

Detailed explanation-2: -In continuation of this policy stance, the Reserve Bank raised the policy repo rate by 25 bps to 8.5 per cent in October 2011 (Table IV. 1). Subsequently, however, while inflation remained on its projected trajectory, downside risks to growth increased due to global risks and domestic policy uncertainties.

Detailed explanation-3: -On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (February 8, 2023) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.50 per cent with immediate effect.

Detailed explanation-4: -(i) Bank rate relates to the loans offered by(i) Repo rate relates to the loans offered bythe RBI to the commercial banks withoutthe RBI to the commercial banks, NOTany collateral (security for purpose of loans). without collateral. The securities arepledged as a security for the loans.