As of February 2025, what was the reverse repo rate in India, which is set by the Reserve Bank of India (RBI) to regulate liquidity in the economy?

Question

YESPYQ · Accepted Answer

Correct answer: b) 3.35%. As of the RBI's February 7, 2025, policy announcement, the reverse repo rate in India remained unchanged at 3.35%. In detail: What is the reverse repo rate? The reverse repo rate is the interest rate at which the RBI borrows money from commercial banks by holding the government securities as collateral. Why is it important? The Reserve Bank of India (RBI) uses the reverse repo rate as a tool to manage liquidity in the financial system and regulate the flow of money in the economy. Recent Changes: The Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points to 6.25% on February 7, 2025. However, the reverse repo rate remained unchanged at 3.35%. Other policy rates: Repo Rate: 6.25% Bank Rate: 6.50% Marginal Standing Facility (MSF) Rate: 6.50% Standing Deposit Facility (SDF) Rate: 6.00% Hence, the correct answer is option (B).

As of February 2025, what was the reverse repo rate in India, which is set by the Reserve Bank of India (RBI) to regulat…

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