It is the rate at which the Reserve Bank of India lends money to commercial banks or financial institutions. An upward revision in Bank Rate implies that banks will also increase deposit rates as well as Base Rate. To the consumer it means a variation in the interest rates on deposits and also EMI.
It is the rate at which a bank sells a security to the RBI to raise money. The bank in this case agrees to buy back the security on a predetermined date with an interest rate (Repo Rate).
Reverse Repo Rate
As the name implies it is the rate at which RBI borrows money from banks. It is a monetary policy instrument which is used to control the money supply in the country.
The minimum rate below which banks are not allowed to lend money except in cases specified by the Reserve Bank of India. Base rate was introduced in India on 01 July 2010.