Reverse Repo Rate
Feb. 3, 2021, 6:05 p.m.
Reverse Repo Rate is the rate at which comercial banks park their excess funds with the RBI.
Main Objective of this is to control the overall supply of money in the economy.
Higher the Reverse Repo Rate the supply of money decreases in the economy as the bank park their money with RBI.
Lower the Reverse Repo Rate the supply of money increases as banks lend more money to borrowers rather than depositing it with RBI.
Reverse Repo Rate is the rate at which comercial banks park their excess funds with the RBI.
Main Objective of this is to control the overall supply of money in the economy.
Higher the Reverse Repo Rate the supply of money decreases in the economy as the bank park their money with RBI.
Lower the Reverse Repo Rate the supply of money increases as banks lend more money to borrowers rather than depositing it with RBI.