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N. K. Gupta posted an Question
July 02, 2021 • 18:01 pm 30 points
  • UGC NET
  • Commerce

Diffrence in bank rate policy and repo rate in simple words

diffrence in bank rate policy and repo rate in simple words

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  • Priya gulani Best Answer

    Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central bank of our country i.e Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. It is one of the main tools of RBI to keep inflation under control. Bank rate is the rate charged by the central bank for lending funds to commercial banks

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