Repo Rate is one of the tools used by the Reserve Bank of India (RBI) to keep inflation under control. Repo rate is the rate at which the Reserve Bank of India lends money to the commercial banks. Commercial banks borrow money from the RBI if there is a shortage of funds. You can read about the RBI – Know More About Reserve Bank of India in the given link.

Further readings:

1. Bad Banks – Idea Proposed Due to COVID-19
2. Cash Reserve Ratio (CRR)- Repo Rate & Reverse Repo Rate (UPSC Notes)