Reverse Repo Normalisation
Recently, State Bank of India stated that it believes the stage is set for a Reverse Repo Normalisation in India.
About Repo and Reverse Repo Rate
Repo Rate
- The term ‘Repo’ stands for ‘Repurchase Agreement’. It is the rate at which the Reserve Bank of India (RBI) gives loans to commercial banks against government securities. Reverse repo rate is the interest that RBI pays to banks for the funds that the banks deposit with it.
Implications
- If the repo rate increases, it means banks are getting funds from RBI at a higher cost.
- This, in turn, will mean that banks ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 Sagarmala Finance Corporation Limited: India’s First Maritime NBFC
- 2 Financial Stability Report
- 3 SEBI Tightens Timelines for Rebalancing Mutual Fund Portfolios
- 4 RBI Relaxes PSL Norms for Small Finance Banks
- 5 Statistical Report on Agriculture and Allied Sectors
- 6 Rapid Expansion of India's Startup Ecosystem
- 7 RBI Introduces STRIPS in State Government Securities
- 8 New Maritime Digital Initiatives: Powering Maritime Efficiency
- 9 India’s First International Agri Hackathon
- 10 Viksit Krishi Sankalp Abhiyan
