Saturday, April 9, 2022

RBI Monetary Policy 2024 - what is repo rate

RBI Monetary Policy

RBI Monetary Policy meeting updates: In the first monetary policy committee meeting of the financial year 2023-24, it has been decided once again to maintain the repo rate. This is the 11th consecutive time that the Reserve Bank of India has maintained the repo rate. Currently the repo rate is 4 percent

 

RBI Monetary Policy 2022 - 23


What is repo rate

Repo Rate

Banks give us loans and we have to pay interest on that loan. Similarly, banks also need a huge amount of money for their day-to-day operations and they take loans from the Reserve Bank of India (RBI). The rate at which the Reserve Bank charges interest from them on this loan is called the repo rate.


What is Bank repo rate 

Repo rate is the interest rate at which commercial banks borrow from the Reserve Bank of India. Reverse repo rate is the interest rate at which the Reserve Bank takes back money from banks. Let us tell you that the bank gets loan at repo rate but it has to deposit securities.


Who is the chairman of the Monetary Committee?


Monetary Policy Committee (MPC):

RBI Governor as its ex-officio chairman. Deputy Governor in charge of monetary policy. One officer of the bank nominated by the central board. Three persons appointed by the central government.


How many times in a year monetary policy is released by Reserve Bank of India?

 

According to Indian bank RBI, the monetary policy committee meetings are held 4 times every year and decisions are published after each meeting. This is a very good guide for RBI monetary policy.


When was the Monetary Policy Committee formed?


RBI Monetary Policy Committee is a committee formed by the Government of India which was constituted on June 27, 2016 to make interest rate determination more useful and transparent.