CURRENT REPO RATE #rbi
Current Repo Rate Current repo rate is 6.50% Current reverse repo rate is at 3.35%. Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central Bank of our country i.e. Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. It is one of the main tools of RBI to keep inflation under control. What is BPS ? BPS stands for Basis points , also referred to as “bps” are a unit of measurement used in finance to express the rate of change in an index or other benchmark or the percentage change in the value of financial instruments. How It Works? This is referred to as the cost of credit. Similarly, banks also borrow money from RBI during a cash crunch on which they are required to pay interest to the Central Bank. This interest rate is called the repo rate. When you borrow money from the bank, the transaction attracts interest on the principal amount. Ongoing Repo Rate and i...