Understand the key concepts of Repo Rate and Reverse Repo Rate in the simplest way! In this video, we explain how the Reserve Bank of India (RBI) controls money flow, manages inflation, stabilizes the economy, and maintains liquidity through these two important monetary policy tools.
Learn what happens when banks face a cash shortage, why RBI lends money, when RBI absorbs excess money from banks, and how these actions impact inflation and the overall economy.
Perfect for students, banking aspirants, competitive exams, and anyone interested in economics.
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📌 Topics Covered:
✔ What is Repo Rate?
✔ What is Reverse Repo Rate?
✔ Why banks borrow money from RBI
✔ How RBI controls inflation
✔ Liquidity Adjustment Facility (LAF) explained
✔ Difference between Repo & Reverse Repo
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