🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

Back

Aryan patil

 • 

Monkey Ads • 1y

Imagine the RBI is like a big bank for other banks. Banks borrow money from the RBI to give loans to people and businesses. The interest rate the RBI charges banks is called the repo rate. Think of the repo rate as the price tag on borrowing money. When the RBI increases the price tag (raises the repo rate), borrowing from them becomes less attractive for banks. This means banks have less money to lend out, which reduces the overall amount of money circulating in the economy. Less money circulating typically means lower inflation. On the other hand, if the RBI lowers the repo rate, borrowing becomes cheaper for banks. This encourages them to borrow more from the RBI, which increases the money supply. More money floating around can lead to higher inflation. By adjusting the repo rate, the RBI can indirectly control inflation by influencing how much money banks lend out.

Reply
2

More like this

Recommendations from Medial

Image Description

Chayan Das

 • 

ZeroBizz • 1m

💡How Do Banks Really Work? Here's a Simple Visual Guide! 🏦 1️⃣ Banks take deposits from customers at ~4% interest. 2️⃣ They lend that money to borrowers at ~10% interest. 💰 The 6% spread is their profit. 🔍 Key Banking Terms You Should Know:

See More
2 Replies
7
Image Description

Rabbul Hussain

Pursuing CMA. Talks... • 5m

The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 6.25%, the first rate cut in nearly five years. What is the repo rate? It’s the rate at which the RBI lends money to commercial banks. A lower repo rate means cheaper loans

See More
1 Reply
1
13

Stoxii

MARKET KA NAYA RYTHA... • 5m

*RBI cuts Repo Rate by 25 bps to 6.25% – the first rate cut in 5 years!* ✅ Boost for economic growth ✅ Lower borrowing costs ✅ Positive for markets & businesses

Reply
2

Atharva Deshmukh

Daily Learnings... • 1y

About Rates in the market... To strike a balance in market, the RBI has to consider all economic factors and carefully set the key rates. Any imbalance in these rates can lead to economic chaos: 1)Repo Rate:-The rate at which RBI lends money to oth

See More
Reply
1
5
Image Description

Naman Kapoor

🎒 • 5m

RBI governor Sanjay Malhotra cuts repo rate by 25 bps!

2 Replies
2
Image Description

Atharva Deshmukh

Daily Learnings... • 1y

Have studied about Monetary Policy in short and it's effect. The monetary policy is a tool through which the Reserve Bank of India (RBI) controls the money supply by controlling the interest rates. RBI is India’s central bank. While setting the int

See More
1 Reply
8
Image Description

Sanket Jadyar

Keep it up and do yo... • 1y

The Reserve Bank of India (RBI) announced on Friday that it has kept the benchmark repo rate unchanged at 6.5% for the eighth consecutive time. What exactly is repo rate? How does it affect you?

1 Reply
5
Image Description
Image Description

financialnews

Founder And CEO Of F... • 8m

"RBI Expected to Cut Repo Rate by 25 Basis Points to 6.25% in December Amid Concerns Over Volatile Food Prices" "RBI Likely to Cut Key Policy Rate by 25 Basis Points to 6.25% in December as Inflation Expected to Ease, Aiming to Boost Economic Growth

See More
2 Replies
7
Image Description

Chayan Das

 • 

ZeroBizz • 1m

BREAKING: RBI Slashes Repo Rate by 50 BPS to 5.50%. The RBI has delivered a surprise rate cut—bringing the repo rate down from 6.00% to 5.50% in June 2025! What This Means for You: 1. Lower EMIs on home, personal, business & education loans. 2. Ea

See More
1 Reply
4
Image Description

Ronak Patel

Here you go! • 5m

📉Loans to get cheaper? 🏦RBI cuts the repo rate for the first time in nearly 5 years to boost the economy. Repo Rate cut by 25bps to 6.25% 📜What is repo rate? --> It is the interest rate at which the central bank lends money to commercial ban

See More
1 Reply
2
6

Download the medial app to read full posts, comements and news.