Скачать или смотреть Reverse Repo Rate | Economics | UPSC | Drishti IAS

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In this informative shorts by Drishti IAS, we are exploring the concept of the Reverse Repo Rate, an important monetary policy tool used by the Reserve Bank of India (RBI). The reverse repo rate is the rate at which RBI borrows short-term funds from commercial banks by offering government securities as collateral. It helps absorb excess liquidity from the banking system, thereby controlling inflation and stabilizing the economy. A change in reverse repo rate influences banks’ lending behavior, money supply, and overall economic activity. For UPSC aspirants, understanding the reverse repo rate is essential as it connects with Monetary Policy, Inflation Management, Liquidity Control, GS Paper 3, and Current Affairs.
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