Explain the following instruments which Reserve Bank of India uses for implementing its monetary policy: Reverse Repo Rate (RRR)
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2020
Explain the following instruments which Reserve Bank of India uses for implementing its monetary policy: Reverse Repo Rate (RRR)
Answer & Explanation:
Reverse Repo Rate: The (fixed) interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the Liquidity Adjustment Facility (LAF).
Topics: Reserve Bank of India (RBI)
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