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प्रश्न
Distinguish between repo rate and reverse repo rate.
अंतर स्पष्ट करें
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उत्तर
The repo rate, or repurchase rate, is the interest rate at which the RBI provides short-term loans to banks, using government bonds as collateral. In contrast, the reverse repo rate is the interest rate at which the RBI borrows money from banks for a short duration by selling them government bonds. This allows banks to park their surplus short-term funds with the RBI and earn interest on those deposits.
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