The repo rates were cut by another 40 bps from 4.40% to 4.00%.

Other policy measures:

Will this rate cut really boost credit growth?

What is Repo rate?

What is Reverse repo rate?

It is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.

What is Marginal standing facility (MSF)?

It is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility.

What is Bank rate?

What is Consolidated sinking fund?

EXIM bank (Export and Import:

Monetary Policy


Reduction in Repo Rate: 

Source:”Economic Times “.

Possible UPSC CSE Mains Question:

Analyse the efficacy of the liquidity window opened by the RBI on uplifting the economy