RBI cuts repo rate by 40 bps to 4 pc to increase credit flow

Source : ANI
Author : ANI
Last Updated: Fri, May 22nd, 2020, 13:53:47hrs
RBI cuts repo rate by 40 bps to 4 pc to increase credit flow

Mumbai: The Reserve Bank of India (RBI) on Friday reduced repo rate by 40 basis points to 4 per cent in an effort to further boost liquidity in the economy which has been reeling under the impact of COVID-19 induced countrywide lockdown.
As a result, the reverse repo rate stands at 3.35 per cent, said RBI Governor Shaktikanta Das. The six-member monetary policy committee (MPC) voted 5:1 in favour of the decision.

Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them.