Which of these institutions fixes the Repo Rate and the Reverse Repo Rate in India?

Options

A. Ministry of Finance
B. Comptroller and Auditor General of India
C. State Bank of India
D. Reserve Bank of India

Answer

D

Explanation

Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
• Reverse Repo rate is the short term borrowing rate at which RBI borrows money from banks.
• Repo rate and Reverse Repo rate is fixed by Reserve Bank of India in India.