How does section 49 of the Reserve Bank of India Act, 1934 define the Bank Rate?
Section 49 identifies the standard RBI purchase or rediscount rate for eligible bills and other commercial paper.
Choose your answer
How does section 49 of the Reserve Bank of India Act, 1934 define the Bank Rate?
Answer and explanation
Correct answer D
Section 49 identifies the standard RBI purchase or rediscount rate for eligible bills and other commercial paper.
Option feedback
Option A
Providing liquidity against approved securities under a repurchase agreement describes the repo rate.
Option B
Absorbing liquidity against government securities under a reverse repurchase agreement describes the reverse repo rate.
Option C
Accepting uncollateralised overnight deposits describes the Standing Deposit Facility rate.
Option D
Section 49 identifies the standard RBI purchase or rediscount rate for eligible bills and other commercial paper.
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Punjab Judicial Services