Current Affairs Exam > Current Affairs Questions > What is the current reverse repo rate of Indi...
Start Learning for Free
What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?
- a)3.5%
- b)3%
- c)3.25%
- d)4%
- e)3.75%
Correct answer is option 'E'. Can you explain this answer?
Verified Answer
What is the current reverse repo rate of India as announced by RBI (Ap...
RBI been decided to reduce the fixed reverse repo rate under liquidity adjustment facility (LAF) by 25 basis points (bps) from 4% to 3.75% with immediate effect to maintain more liquidity in the banking system. On the other hand, repo rate remained unchanged to 4.40%, but it could be reduced as inflation is likely to fall below its target in a couple of months. Following table shows the Policy Rates of RBI as of April 17, 2020:
Most Upvoted Answer
What is the current reverse repo rate of India as announced by RBI (Ap...
The current reverse repo rate of India as announced by the Reserve Bank of India (RBI) on April 17, 2020, is 3.75%.
Explanation:
The reverse repo rate is the rate at which commercial banks can park their excess funds with the RBI. It is the opposite of the repo rate, which is the rate at which the RBI lends money to banks.
The RBI adjusts these rates to control the liquidity in the banking system and influence inflation and economic growth. Lowering the reverse repo rate encourages banks to lend more and stimulate economic activity, while increasing the reverse repo rate encourages banks to park their funds with the RBI, reducing liquidity in the system.
The current reverse repo rate of 3.75% was announced as part of the RBI's measures to combat the economic impact of the COVID-19 pandemic. The RBI has been implementing various measures to provide liquidity support to banks and ensure the stability of the financial system.
The decision to reduce the reverse repo rate to 3.75% was made by the Monetary Policy Committee (MPC) of the RBI. The MPC is responsible for setting the policy rates in India and consists of six members, including the RBI Governor.
By lowering the reverse repo rate, the RBI aims to incentivize banks to lend to productive sectors of the economy and support economic growth. It also helps in maintaining adequate liquidity in the banking system.
Overall, the current reverse repo rate of 3.75% is a step taken by the RBI to address the economic challenges posed by the COVID-19 pandemic and provide support to the financial system.
Explanation:
The reverse repo rate is the rate at which commercial banks can park their excess funds with the RBI. It is the opposite of the repo rate, which is the rate at which the RBI lends money to banks.
The RBI adjusts these rates to control the liquidity in the banking system and influence inflation and economic growth. Lowering the reverse repo rate encourages banks to lend more and stimulate economic activity, while increasing the reverse repo rate encourages banks to park their funds with the RBI, reducing liquidity in the system.
The current reverse repo rate of 3.75% was announced as part of the RBI's measures to combat the economic impact of the COVID-19 pandemic. The RBI has been implementing various measures to provide liquidity support to banks and ensure the stability of the financial system.
The decision to reduce the reverse repo rate to 3.75% was made by the Monetary Policy Committee (MPC) of the RBI. The MPC is responsible for setting the policy rates in India and consists of six members, including the RBI Governor.
By lowering the reverse repo rate, the RBI aims to incentivize banks to lend to productive sectors of the economy and support economic growth. It also helps in maintaining adequate liquidity in the banking system.
Overall, the current reverse repo rate of 3.75% is a step taken by the RBI to address the economic challenges posed by the COVID-19 pandemic and provide support to the financial system.
|
Explore Courses for Current Affairs exam
|
|
Similar Current Affairs Doubts
Top Courses for Current AffairsView all
What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer?
Question Description
What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? for Current Affairs 2025 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for Current Affairs 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer?.
What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? for Current Affairs 2025 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for Current Affairs 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer?.
Solutions for What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? in English & in Hindi are available as part of our courses for Current Affairs.
Download more important topics, notes, lectures and mock test series for Current Affairs Exam by signing up for free.
Here you can find the meaning of What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer?, a detailed solution for What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? has been provided alongside types of What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice What is the current reverse repo rate of India as announced by RBI (April 17, 2020)?a)3.5%b)3%c)3.25%d)4%e)3.75%Correct answer is option 'E'. Can you explain this answer? tests, examples and also practice Current Affairs tests.
|
|
Explore Courses for Current Affairs exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup