Question: On 7th April 2021, Reserve Bank of India (RBI) has announced its bimonthly policy review. What is current Repo Rate as per the review?
a)4%
b) 3%
c)5%
d) none of the above
Ans: a
Context
- On April 7, 2021, the Monetary Policy Committee of Reserve Bank of India announced the outcome of its bi-monthly monetary policy review.
Facts
- Amid elevated inflation Monetary Policy Committee of Reserve Bank of India has kept the accommodative policy stance in deciding the various policy rates.
- The repo rate has been kept unchanged at 4%.
- The reverse repo rate has been kept at 3.35%.
- The MSF rate has been kept unchanged at 4.25%.
- The Bank rate has been kept unchanged at 4.25%.
Repo Rate
- The repo rate is the rate at which the Reserve Bank of India lends money to the commercial banks in the country.
Reverse Repo Rate
- The reverse repo rate is the rate at which the Reserve Bank of India borrows money from the commercial banks in the country.
MSF Rate
- MSF is Marginal Standing Facility. It is the rate at which RBI lends funds to scheduled banks against Government securities.
Bank Rate
- Bank Rate is a discount rate at which RBI grants long term loans to commercial banks.
By kameshwar shukla
Reference: https://www.rbi.org.in/