Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation...Bank rate is the rate at which comm bank can borrow money from RBI when they run short of reserves....In other words if i say..Bank sells the security to RBI to raise funds. When banks sell securities to RBI ,It  promises to buy back the same securities from RBI at a predetermined interest rate called repo rate . It is actually a repurchase agreement between banks and RBI. On the other hand, bank Rate is the rate at which RBI lends funds to commercial banks for a long period of time without  selling or buying any kind of securities....Hope this helps u...

Well repo rate is applicable to short term lending by the central bank and is governed by the short term interest rate while bank rate is applicable to long term lending by the central bank and is governed by the long term interest rate...