Difference between Repo Rate & Reverse Repo Rate

Know About Repo Rate & Reverse Repo Rate

The central bank of India i.e., Reserve bank of India (RBI) formulates and monitors various policies which to regulate the flow of money in the economy. These policies also help in controlling the situations of inflation in the country. In this context, repo rate and reverse repo rate are instruments of RBI’s monetary policy that can help control the money supply in the economy.