<P> Bank rate in India is determined by Reserve Bank of India ( RBI ) . It is the rate at which RBI gives loan to commercial banks with collateral ( RBI act 1934 sec. 49 ) The RBI also provides short term loans to its clients ( keeping collateral ) which is called the repo rate . RBI revises this rate periodically . However , there is no predetermined schedule . The repo rates are changed re-actively depending on the economy . Like other countries , repo rates affect the money flow into the nation 's economy and affect the inflation and commercial banks ' lending or interest rate The Indian bank rate is 6.25 % , which is same as the rate for Marginal Standing Facility ( MSF ) </P>
<P> Bank rate in India is determined by Reserve Bank of India ( RBI ) . It is the rate at which RBI gives loan to commercial banks with collateral ( RBI act 1934 sec. 49 ) The RBI also provides short term loans to its clients ( keeping collateral ) which is called the repo rate . RBI revises this rate periodically . However , there is no predetermined schedule . The repo rates are changed re-actively depending on the economy . Like other countries , repo rates affect the money flow into the nation 's economy and affect the inflation and commercial banks ' lending or interest rate The Indian bank rate is 6.25 % , which is same as the rate for Marginal Standing Facility ( MSF ) </P>
the rate at which rbi lends money to commercial banks
the rate at which rbi lends money to commercial banks
Reserve Bank of India
Reserve Bank of India