Meaning

Repo Rate is the financing speed where RBI gives money to banking companies in the event that latter will bring particular ties. Banking institutions sell off such bonds having a binding agreement in order to repurchase him or her. It’s purchased back when banking institutions afford the appeal during the the rate from ‘REPO’. REPO means ‘Repurchase Option’.

Have

RBI imposes this new Repo Price having banking institutions one play the role of a keen anchor to possess financial stability. Some basic qualities from repo rate was:

• There’s exchanging away from bonds. It is and therefore named ‘Repurchase Agreement’. (more…)