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What is Repo & Reverse Repo? | Repo Rate and Reverse Repo Rate Explained
Repo or repurchase option is a means 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. Repo rate is ...
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