Repo Rate & Reverse Repo Rate are tools under Liquidity Adjustment Facility available with RBI. In this hindi video, Repo and Reverse Repo Rates are explained in detail and how RBI controls inflation with them. Repo Rate and Reverse Repo Rate are tools available under RBI Monetary Policy in India to control inflation.
In this video, we have explained:
What is repo rate? What is reverse repo rate ?
What is repo and reverse repo period?
What is current repo rate of RBI?
What will happen if repo rate increases?
What is overnight reverse repo rate?
What is repurchase option agreement?
How RBI controls inflation with repo rate and reverse repo rate?
What is liquidity adjustment facility?
Repo or repurchase option is a mean of short-term borrowing, wherein banks sell approved government securities to RBI and get funds in exchange. In other words, in a repo transaction, RBI repurchases government securities from banks, depending on the level of money supply it decides to maintain in the country's monetary system. Make sure to Like and Share this video.

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