sir , great video , thanks a lot for ur effort . sir , repo rate is overnight lending facility or the one which is lent for a longer period of time is called term repo , this is what I have studied sir , however here u said that repo rate is lending rate for short term loans i.e. less than a year . kindly clarify on the same sir as to if repo is overnight lending facility or more than overnight

Akash Kumar

2 years ago

What is repurchased here? The bank only pledged. Bank didn't had 100 crore to begin with. Bank only offered some security to RBI and 6% was lost by bank on this little amount of security. How can something be repurchased when it was never bought in the first place? The bank only pledged for that.

Israel Jebasingh

2 years ago

Bank will get higher interest from client say Reliance and will pay interest of REPO to RBI. That way bank will make profit

Akash Kumar

2 years ago

Thank you for your reply sir.

SG PRABU

2 years ago

sir, by more than a year MPC of RBI neither increases nor decreases the Repo rate & CRR means there's no inflation or recession in market??

Banking 4 REPO Rate
Introduction . R A Israel Jebasingh 2004 Batch IAS Director, Officers IAS Academy
Repurchase Option(REPO) Rate
Specimen of a Government security Stock Certifieate 7
G sec
. 11 %
10 alt alate 6 State Bank of India Repo Rate Repo means repurchase options Repurchase of Govt Securities Rate of interest the RBl charges from its clients on Short Term Borrowings
R 94 um RBI
. 11 %
REcessiON
RBI increases Repo Rate to fight Inflation RBI decreases Repo Rate to fight Recession
. Reduction of Repo rate will increase money supply Was introduced in 1992 . Higher the Repo rate costlier the interest rate charged by banks on loans to customers . Repo rate is 6 % as on date 18