At which rate does the RBI extend loans to Commercial Banks?

Question

Question

This question was previously asked in

SSC MTS Previous Paper 29 (Held On: 19 August 2019 Shift 2)

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Answer 1

The Correct Answer is Option 1 i.e Bank rate.

Bank rate	The rate charged by the central bank for lending funds to commercial banks.
Repo rate	The rate at which the banks borrow short-term money from the RBI against securities or bonds.
Penal rate	It is the rate at which the borrower will be charged if he does not pay the loan EMI as per the repayment schedule of the loan.
Reverse Repo rate	The rate at which the central bank borrows money from the commercial banks in the country.