Define or explain reverse repo rate

Open in App

Solution

Reverse repo rate is the rate at which the commercial banks park reserves with the central bank. This rate is decided by the central bank and the central bank pays it to the commercial banks of the amount parked with them in form of deposits.

Suggest Corrections

Similar questions

Explain the role of reverse repo rate in controlling money supply.

What do you mean by reverse repo rate?

Join BYJU'S Learning Program