Aartee Mishra is teaching live on Unacademy Plus
aily Lectuire Series Ramesh Singh's brief summary o unacadeny 1 y Aartee Mishra Indian -Economy Banking in India-B Hindi .
lam Aartee Mishra Graduated from Delhi University, Topper in all my semesters, Pursuing P.G and preparing for CSE. 2 Years of teaching experience of General Studies for competitive examination Have been teaching on Unacademy Plus
Ancient & Medieval History From Harappa to Revolt of 1857 with brief Art and Culture (Prelims & Mains) ^ unacademi Aartee Mishra Detailed Coverage of each and every topic from Ancient to Medieval India Short Crisp Notes for better Revision Test Series Course Starting from, 30th July 9:30pm-10:30pm on Unacademy Plus
What is Repo Rate? When we need money, we take loans from banks. And banks charge certain interest rate on these loans. This is called as cost of credit (the rate at which we borrow the money). Similarly, when banks need money they approach RBI. The rate at which banks borrow money from the RBl by selling their surplus government securities to RBl is known as "Repo Rate." Repo rate is short form of Repurchase Rate. Generally, these loans are for short durations up to 2 weeks. It simply means Repo Rate is the rate at which RBl lends money to commercial banks against the pledge of government securities whenever the banks are in need of funds to meet their day-to-day obligations. - Banks enter into an agreement with the RBl to repurchase the same pledged government securities at a future date at a pre-determined price. RBI manages this repo rate which is the cost of credit for the bank.
What is Repo Rate? Example- If repo rate is 5% , and bank takes loan of Rs 1000 from RBI , they will pay interest of Rs 50 to RBI. So, higher the repo rate higher the cost of short-term money and vice versa. Higher repo rate may slowdown the growth of the economy. If the repo rate is low then banks can charge lower interest rates on the loans taken by US. So whenever the repo rate is cut, can we expect both the deposit rates and lending rates of banks to come down to some extent? This may or may not happen every time. The lending rate of banks goes down to the existing bank borrowers only when the banks reduce their base rates as all lending rates of banks are linked to the base rate of every bank In the absence of a cut in the base rate, the repo rate cut does not get automatically transmitted to the individual bank customers. This is the reason why you might have observed that your loan EMIs remain same even after RBl lowers the repo rates. Banks check various other factors (like credit to deposit ratios etc.,) before reducing the Base rates.
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NCERT Class 6-12 Summary of All the Subjects Prelims & Mains Subjects Covered Aartee Mishr Polity: Governance, Society, Public Administration Geography: Indian and World Geography, All Important Maps, Physical and Political Features, Disaster Management History: Ancient, Medieval, Modern with Art & Culture Economics: Basic Concepts, Understanding Economic Development Science: Important Chapters of Environment and Ecology Course Starting from, 25th July 9:30pm-10:30pm on Unacademy Plus