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. Repo rate is also used as a monetary method to control inflation.

Detailed explanation-2: -Repo Rate (RR) is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks or financial institutions in India against government securities. The current Repo Rate 2022 is at 4.40%.

Detailed explanation-3: -Repo rate is the rate at which commercial banks borrow money from the central bank of a country (which in the case of India is the Reserve Bank of India or RBI) when they are in the need of funds.

Detailed explanation-4: -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-5: -(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.