2016
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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9
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7
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4
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10
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Detailed explanation-1: -On the other hand, reverse repo rate is the interest rate paid to commercial banks when they deposit their excess funds in the central bank or when the central bank borrows money from them. As of April 2021, RBI’s repo rate stands at 4% and reverse repo rate at 3.35%.
Detailed explanation-2: -Reserve Bank of India (RBI), the central banking institution of India controls the monetary policy of the Indian currency. The key repo rate has been hiked on 7 December 2022 by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) by 35 basis point to 6.25%.
Detailed explanation-3: -The policy repo rate hike by the Reserve Bank of India (RBI) in Sept. 2022 to 5.9% has led many banks to increase their interest rate on loans. As per RBI, the average rate on 1-year MCLR, or the lowest lending rates, of scheduled commercial banks (SCBs) increased from 7.65% in Aug. 2022 to 7.75% in Sept. 2022.