Repo Rate
Definition
The rate at which the RBI lends to commercial banks; a key policy lever for interest rates.The repo rate is the interest rate at which the Reserve Bank of India lends short-term funds to commercial banks. It is the RBI's main monetary-policy tool: changes in the repo rate influence the rates banks charge on loans and offer on deposits. The current rate is set by the RBI's Monetary Policy Committee and changes over time.
Related guides
Related terms
- Fixed Deposit (FD) — A deposit that locks a sum with a bank for a fixed term at a pre-agreed interest rate.
Definitions are general and educational — not advice. Verify current rates, limits and thresholds with the provider or the RBI/SEBI before acting. See our editorial policy.