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The 'Repo Rate' in India is decided by which institution?
Ministry of Finance
RBI
SEBI
NITIAayog
RBI
The Repo Rate in India is determined and decided by the Reserve Bank of India (RBI), specifically through its Monetary Policy Committee (MPC) ┬╖ It is the rate at which the central bank lends short-term funds to commercial banks against government securities.
The Repo Rate in India is determined and decided by the Reserve Bank of India (RBI), specifically through its Monetary Policy Committee (MPC) ┬╖ It is the rate at which the central bank lends short-term funds to commercial banks against government securities.
Established under the Reserve Bank of India Act, 1934, and subsequently amended in 2016 to institutionalize the Monetary Policy Committee (MPC) for inflation targeting.
Decided by the Monetary Policy Committee (MPC) of the RBI, comprising six members.
Acts as a key tool of the RBI's monetary policy to control money supply and inflation.
An increase in the repo rate makes borrowing expensive for commercial banks, cooling down economic inflation.
Ministry of Finance: Formulates fiscal policy, taxation, and the annual Union Budget, not monetary policy rates.
SEBI (Securities and Exchange Board of India): Regulates the securities market and protects investor interests.
NITIAayog: Serves as the apex public policy think tank of the Government of India, providing directional and policy inputs.
B is correct тАФ The Repo Rate in India is decided by the Reserve Bank of India (RBI).
Frequently tested alongside the Reverse Repo Rate, CRR (Cash Reserve Ratio), and SLR (Statutory Liquidity Ratio) in banking and monetary policy sections.