Reverse Repo Rate
Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country.
In other words, it is the rate at which commercial banks in India park their excess money with Reserve Bank of India usually for a short-term.
It is often used as a monetary policy to control inflation in the economy. An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with the RBI, thereby decreasing the supply of money in the market.
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