The repo rate is the rate at which

Indian Economy and Banking · General Awareness · Medium · Practice for RRB Group D, RRB NTPC CBT 1, SSC CGL Tier 1, SSC CGL Tier 2, SSC CHSL Tier 1

The repo rate is the rate at which

Banks lend to customers
RBI lends to commercial banks
Banks lend to each other
RBI borrows from banks

Answer and solution

Correct answer: B) RBI lends to commercial banks

Repo is short-term borrowing by banks from the RBI against government securities.

Learn the method: Indian Economy and Banking rules and worked examples

Similar questions

GST was introduced in India on (Medium)
The Reserve Bank of India was established in (Medium)
What is the currency of Japan? (Medium)

Practise more Indian Economy and Banking questions in a timed mock · Report an error