Economics · Banking and Monetary Policy
What is meant by 'Bank Rate' in the Indian banking system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The standard rate at which the Reserve Bank of India is prepared to buy or rediscount bills of exchange or other commercial paper from commercial banks✓
- 2The interest rate that commercial banks charge from their prime retail customers
- 3The fixed rate of return offered on long-term government securities
- 4The conversion rate between domestic currency and foreign currency reserves
Correct answer
The standard rate at which the Reserve Bank of India is prepared to buy or rediscount bills of exchange or other commercial paper from commercial banks
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