Learn the meaning of repo rate , who decides it, and its impact of loans, EMIs, and the Indian economy. The repo rate is one of the most important terms in banking and finance, often making... Get the latest Repo & Reverse Repo Rate 2025, their meaning, history, impact on the economy, and RBI’s monetary policy updates. The repo rate is the interest rate at which RBI lends money to banks when they’re low on funds. In simple terms: Repo Rate = The cost banks pay to borrow from RBI. When RBI raises the repo rate : When RBI lowers the repo rate : As discussed earlier, repo rate is the rate of interest which is charged by the RBI for funds lent to the commercial banks. When the repo rate increases, the interest rate at which commercial banks borrow money from the central bank increases and the borrowing becomes costlier.
