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BANKING AND MONETARY POLICY — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY1 Mark
Question
What is Reverse Repo Rate?
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Answer

$RBI$ repurchases its securities from the commercial banks in the event when the $RBI$ has to borrow short term funds for a particular interest rate from the commercial banks by parking its securities with the commercial bank.

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