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5 lessons,
1h 6m
Banking 4 REPO Rate
1,011 plays

Repurchase Option(Repo) Rate

Israel Jebasingh
Director of Officers IAS Academy. IAS Officer of 2004 Batch with AIR 59.

Unacademy user
Vineet Yadav
a year ago
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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
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.
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??
  1. Banking 4 REPO Rate

  2. Introduction . R A Israel Jebasingh 2004 Batch IAS Director, Officers IAS Academy

  3. Repurchase Option(REPO) Rate

  4. Specimen of a Government security Stock Certifieate 7

  5. G sec

  6. . 11 %

  7. 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

  8. R 94 um RBI

  9. . 11 %

  10. REcessiON

  11. RBI increases Repo Rate to fight Inflation RBI decreases Repo Rate to fight Recession

  12. . 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