What is Reverse Repo Rate?

What is Reverse Repo Rate

What is the Reverse Repo Rate?

Reverse Repo rate is the rate at which the commercial banks of a country Deposits their money to the central bank(Reserve Bank of India) in India(or your country.

Reverse Repo rate is used to control the money supply in the country.

while Repo rate is used to control the inflation.

in general, when we deposit our money to the banks then the bank will give us interest on our money.

in a similar way when a bank deposits money to the RBI, then RBI will give interest on their money is called Reverse Repo.

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