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Banking 4 REPO Rate
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Repurchase Option(Repo) Rate
Israel Jebasingh
Director of Officers IAS Academy. IAS Officer of 2004 Batch with AIR 59.
U
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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
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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.
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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??
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  1. Banking 4 REPO Rate


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


  3. Repurchase Option(REPO) Rate





  7. Specimen of a Government security Stock Certifieate 7


  8. G sec


  9. . 11 %


  10. 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


  11. R 94 um RBI


  12. . 11 %


  13. REcessiON


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


  15. . 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