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Repo rate or repurchase price of an asset is the price at which an open ended scheme Repurchases or redeems its units from unit holders... it may include exit load too. Generally, it forms part of an repurchase agreement.
Repo rate is the rate at which the commercial banks borrow from the central bank(RBI). Reverse Repo rate is the rate at which RBI borrows from the commercial banks.
The rate at which the central bank of a state .e.g Federal Bank, US, lends loans to the commerical banks is termed as REPO RATE. Its under the quantitive monetary policy techique of a central bank.
whenever the govt increases the repo rate rate of interest for the loans available to us increases and whenever it is lowered the rate of interest lowers. Similar is the case with the Reverse Repo rate whenever it is increases the Loans available to us are cheaper in interest and whenever it is decreased the loans are accompanied by higer interest rates. RBI increases Repo rate to curb inflation and reduce the flow of money in the market. and reduces or increases the reverse repo rate acc.
The rate at which Central Bank(RBI in India) lends to other banks is called bank rate. However, the RBI applies a short-term interest rate,called Repo Rate, on its lendings so as to regulate the flow of money into the market, and hence also the inflation.
repo rate is the rate at which a lender lends against a collateral, usually T.Bills. Other collateral also offered on mutual agreement.