Current repo rate: The repo rate is the

The repo rate is the interest rate at which RBI lends to banks and is the policy rate that influences inflation and growth. The current repo rate is 6.00% as of May 9, 2025, according to the RBI website. It helps regulate liquidity and control inflation, and the current repo rate stands at 5.50% as of October 2025. An agreement between the central bank and the commercial bank will be made to repurchase the securities at a price that is predetermined. PREAMBLE “to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.” In essence, repo rate is the money that RBI charges the banks for lending money to them, and reverse repo rate is the money that RBI pays to the banks for holding their money. The current repo rate is 4.00% and the reverse repo rate is 3.35%. RBI announces these rates usually once every two months.