Repo Rate

Repo Rate

Repo rate is the rate at which the banks can borrow money from a central bank of the country in order to avoid scarcity of funds.For eg, whenever the banks have any shortage of funds they can borrow it from Reserve Bank of India (RBI). Thus Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.It is also a financial & economic tool in the hands of government to control the availability of money supply in the market by altering the repo rate from time to time.

External links

* [http://www.rbi.org.in/ RBI]


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Look at other dictionaries:

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  • repo rate — See base rate. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Repo Rate —    A simple interest rate calculation to determine how much interest is to be added on to the second leg of a repo transaction.    ► See also Repurchase Agreement. * * * repo rate UK US noun [C] (also repo) INFORMAL ► FINANCE, STOCK MARKET,… …   Financial and business terms

  • REPO RATE — процентная ставка, применяемая ЦБ в операциях с коммерческими банками и другими кредитными институтами при покупке (учете) государственных казначейских обязательств; …   Глоссарий финансовых и биржевых терминов

  • Implied Repo Rate — The rate of return that can be earned by simultaneously selling a bond futures or forward contract and then buying an actual bond of equal amount in the cash market using borrowed money. The bond is held until it is delivered into the futures or… …   Investment dictionary

  • Implied repo rate — IRR is the rate of return of borrowing money to buy an asset in the spot market and delivering it in the futures market where the notional is used to repay the loan. Simplified closed form IRR = ( frac ext{InvoicePrice} ext{PurchasePriceOfBond} 1 …   Wikipedia

  • repo — re·po / rē ˌpō/ n pl repos 1: repurchase agreement 2: repossession Merriam Webster’s Dictionary of Law. Merriam Webster …   Law dictionary

  • repo agreement — Repo is short for a repurchase agreement or a sale and repurchase agreement where one party sells a security to another party for cash and agrees to repurchase it on a specified date for a specified price. The interest rate implied from this… …   Law dictionary

  • implied repo rate — The rate that a seller of a futures contract can earn by buying an issue and then delivering it at the settlement date. Related: cheapest to deliver issue. Bloomberg Financial Dictionary The rate of return before financing costs implied by a… …   Financial and business terms

  • Implied repo rate — The rate that a seller of a futures contract can earn by buying an issue and then delivering it at the settlement date. Related: cheapest to deliver issue …   Financial and business terms

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