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RBI

Reverse Repo Rate

The rate at which the Reserve Bank of India borrows money from commercial banks for short durations. When banks have excess liquidity, they park funds with RBI at the reverse repo rate. Currently subsumed under the SDF (Standing Deposit Facility).

Last updated: 17 May 2026

Frequently Asked Questions

What is Reverse Repo Rate?

The rate at which the Reserve Bank of India borrows money from commercial banks for short durations. When banks have excess liquidity, they park funds with RBI at the reverse repo rate. Currently subsumed under the SDF (Standing Deposit Facility).

What is the significance of Reverse Repo Rate under RBI?

Reverse Repo Rate is significant under RBI because The rate at which the Reserve Bank of India borrows money from commercial banks for short durations. When banks have excess liquidity, they park funds with RBI at the reverse repo rate. Currently subsumed under the SDF (Standing Deposit Facility).

Who does Reverse Repo Rate apply to?

Reverse Repo Rate under RBI applies to companies, professionals, and individuals involved in RBI-related compliance and regulatory matters in India. Specifically: The rate at which the Reserve Bank of India borrows money from commercial banks for short durations. When banks have excess liquidity, they park funds...

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