Bank Rate


 
 
Concept Explanation
 

Bank Rate

Bank Rate: 

Bank Rate is the rate at which RBI lends money to other banks or  financial institutions; rate at which central bank of the country (RBI) allows finance / liquidity to commercial / scheduled banks. RBI uses Bank Rate as a tool for short-term measures. Any upward revision in Bank Rate is an indication that banks should also increase the deposit rates as well as the Prime Lending Rate. Any revision in the Bank Rate indicates more or less interest on your deposits and also an increase or decrease in your EMI.

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Sample Questions
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Question : 1

Bank rate means _________________________

Right Option : C
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Explanation
 
 


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