What is Repo Rate? — Meaning, Definition & Example
Definition
Repo Rate is the interest rate at which RBI lends short-term money to commercial banks against government securities. It is a key monetary policy tool to control inflation and liquidity. When repo rate decreases, borrowing becomes cheaper for banks, leading to lower loan interest rates.
When RBI reduces the repo rate from 6.5% to 6.25%, your floating-rate home loan EMI could decrease by ₹500-1,000 per ₹50 lakh borrowed.
🇮🇳 Repo Rate in Hindi / हिंदी में
रेपो रेट — रेपो रेट वह ब्याज दर है जिस पर RBI सरकारी प्रतिभूतियों के बदले वाणिज्यिक बैंकों को अल्पकालिक धन उधार देता है। यह मुद्रास्फीति और तरलता नियंत्रित करने का प्रमुख उपकरण है।
Repo Rate (Hinglish) — Repo Rate wo interest rate hai jis pe RBI commercial banks ko short-term money deta hai government securities ke against. Jab repo rate kam hota hai, loan interest rates bhi kam hote hain.