What is the present repo rate?

As of August 6, 2021, the repo rate was pegged at 4%. Repo Rate is the fixed interest rate at which the Reserve Bank of India (RBI) provides liquidity to banks against the collateral of Government or other securities. You can read about The Reserve Bank of India: Functions and Composition in the given link.

In the international market there are 4 types of repos: tripartite repos, classic repo bond borrowing, lending repos, and buy-sell back repos.

Further readings:

  1. Non Performing Assets (NPA) – Facts for UPSC GS-III
  2. Monetary Policy – Objectives, Roles and Instruments

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