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RBI Revised Repo and Reverse Repo Rates

For controlling inflation, RBI revised interest rates yesterday. It is fifth time when, RBI has increased Repo and Reverse Repo rate. Repo rate is an interest rate which pays commercial bank to RBI, when it takes loan from RBI and reverse repo rate is that interest rate which pays by RBI, if it takes loan from commercial bank. Because, RBI has increased both repo and reverse repo rate, to take loan has become costly.

Repo Rate has been increased by 0.25%


Reverse Repo Rate has been increased by 0.5%

Main Aim to increase these interest rates

1) To reduce inflation from 8.5% to 6%

2.) To attract more depositors because after increasing these rates, it can be expected that depositor will earn more on their fixed deposits.

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Accounting Education: RBI Revised Repo and Reverse Repo Rates
RBI Revised Repo and Reverse Repo Rates
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Accounting Education
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