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Repo rate is a rate at which RBI lends funds to commercial banks in case of shortfall of funds.

KAMAL AHMAD KHAN
by KAMAL AHMAD KHAN , CEO/PRESIDENT , NHMS FINANCIAL CONSULTANCY-ADVISORY & ASSET MANAGEMENT COMPANY

REPO RATE IS SHORT FOR REPURCHASE RATE . IT IS THE RATE AT WHICH CENTRAL BANKS BUY BACK THEIR SECURITIES (T-BILLS, T-NOTES, T-BONDS) . THIS IS USED TO INJECT LIQUIDITY IN THE MARKET.

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