WHAT IS REVERSE REPO RATE

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   WHAT IS REVERSE REPO RATE

         Reverse Repo Rate is an important monetary policy tool used by the Reserve Bank of India to control liquidity and inflation in the economy. The interest rate at which the Reserve Bank of India borrows money from banks for the short term to infuse the money in economy via government policies is called reverse repo rate. RBI offer attractive interest rate through reverse repo rate. Banks voluntarily lend excess money to the central banks as it provides to earn attractive interest rate with security. Lending money to the central banks is secure.

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