Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> The rate of interest charged by RBI on the loans given to commercial banks is called bank rates.

• A. True
• B. False

Answer 1

The correct option is A True

The bank rate is the rate of interest which is charged by a central bank while lending loans to a commercial bank. In the event of a fund deficiency, a bank can borrow money from the central bank of a country. In India’s case that would be the Reserve Bank of India.