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Repo Rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate.

These facilities can only be used for transferring money within the country. The Preamble of the RBI describes its basic functions to regulate the issue of bank notes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country. Fundamental Analysis and Stock Valuation Simplified. Thus we can say that this serves duel purposes i.

(BY THE BANKERS FOR THE BANKERS)

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