RBI1 min read
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 (FAQs)🔗
Q1. What is Reverse Repo Rate in Indian corporate law?▼
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).
Q2. Why is Reverse Repo Rate important for compliance?▼
Reverse Repo Rate is governed by the Reserve Bank of India under applicable banking and monetary policy frameworks. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Reverse Repo Rate?▼
Reverse Repo Rate is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with RBI regulatory matters in India.
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