The repo rate is the interest rate when the commercial bank borrows funds from the RBI against the safety and the collateral of the bond. RBI Repo Rate 2025 is now 5.5% Which helps maintain liquidity and meet the requirements required. The current repo rate 2025 has seen a reduction of 25 basis points. RBI has reduced the rate of 100 basis points at a rate since February 2025. The given article will get updates to individuals Repo rate in 2025 Which is to be charged by banks.
RBI repo rate 2025
The Reserve Bank of India is a major financial organization to lend loans and other finance to commercial banks. RBI is a central bank that is regulating currency in the economy. RBI is a central bank that pays loans to commercial banks and they charge a fixed rate. The repo rate is the interest rate charged by the RBI to commercial banks when buys funds for pre -loans. The repo rate is an important tool used by the RBI to maintain liquidity in the banking system and also control the economy. When they require short -term security, they can borrow the securities and borrow through the RBI and charge the interest rate which is the repo rate.
Repo means for the recurrent agreement, stating that the bank agrees to purchase back the securities that are vows at a later date. Current repo rate 2025 5.5% that is less than 6.5% and is 1% or 100 basis digits. The rate has been fixed that inflation will be 3.16% in April 2025. This is the third direct cut by the Monetary Policy Committee and thereafter decreased in April. The reverse repo rate has become unchanged by 3.35% and the base point is to fix the rate of change in financial instruments. To get more information at the repo rate, you will check the post below.
What is the repo rate 2025?
- The repo rate interest rate that is charged by RBI when loans are given to commercial banks.
- The repo rate has now increased to 5.5% and has reduced by 100 basis points which was 6.5% earlier.
- The reverse repo rate has been fixed 3.35% and the reverse repo rate is the interest rate charged by commercial banks when the RBI borrows funds from them.
- RBI repo rate 2025 The repo rate has been fixed after a decrease in 25 basis points and is brought down to 5.5%.
- BPS is the unit of measurement that is used to see the rate of change in index in finance.
Repo Rate 2025 Work
When commercial banks borrow money from RBI, the transaction will attract the rate of interest on the total lending amount.
This is also the cost of credit and the charged interest rate is repo rate.
The repo rate is an agreement that includes securities such as the Treasury Bill and others.
Commercial banks get cash and RBI is given securities.
RBI repo rate history
| date | Repo rate |
| 6 June 2025 | 5.5% |
| 9 April 2025 | 6% |
| 7 February 2025 | 6.25% |
| 6 December 2024 | 6.5% |
| 9 October 2024 | 6.5% |
| 8 August 2024 | 6.5% |
| 7 June 2024 | 6.5% |
| 5 April 2024 | 6.5% |
How do repo rates affect home loans?
Buyers who take home loans are bound by repo rates or people moving beyond the existing home loan. The broadcasts are sharp and the adjustment of repo rates will be reflected in the EMI outlay.
Banks must decide how much additional interest will be added to the repo rate on hostage.
How does the repo rate affect fixed deposits?
Increase in repo rate will be beneficial for investors who are looking for fixed deposits that have low risk and competitive rates. Change in repo rate will affect the bank’s lending and deposit rates.
Question on RBI Repo Rate 2025
What is the repo rate?
The repo rate is the interest rate paid by commercial banks on loans taken by RBI.
What is RBI’s repo rate?
RBI’s repo rate has been 5.5% which is fixed after reduced by 25 basis digits.
What is the reverse repo rate?
The reverse repo rate has been fixed at 3.35%.
