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Reverse Repo rate and Open Market Operations: Understanding Monetary Policy 4) (for UPSC CSE)

Lesson 5 of 9 • 984 upvotes • 8:59 mins

Ayussh Sanghi

This lesson explains the very important concept of reverse repo rate and open market operations. It starts with the definition of Reverse Repo rate, its features, why does bank use reverse repo rate, how does repo rate work. Then it goes on to cover Open Market Operations - selling Government securities to take out money from the market. It also explains when and why does RBI do that.

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