Question:
The repo rate in India is determined and regulated by which of the following organizations?
The repo rate in India is determined and regulated by which of the following organizations?
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Remember that monetary policy tools (like Repo Rate, Reverse Repo Rate, CRR, and SLR) are always controlled by the central bank (RBI), whereas fiscal policy is handled by the government (Ministry of Finance).
Updated On: Jul 5, 2026
- Ministry of Finance
- State Bank of India
- Reserve Bank of India (RBI)
- Securities and Exchange Board of India (SEBI)
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Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Understanding the Question:
The question asks to identify the organization responsible for determining and regulating the repo rate in India.
Step 2: Detailed Explanation:
The Repo Rate (Repurchasing Option Rate) is the interest rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
In India, the central banking institution is the Reserve Bank of India (RBI).
The Monetary Policy Committee (MPC) of the RBI meets regularly to decide on the repo rate to control inflation and stimulate economic growth.
Step 3: Final Answer:
The correct choice is (C).
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