Q. “The interest rate which the RBI charges on its long-term lending’s known as”?
Answer: A
Notes:
Explanation: The interest rate which the RBI charges on its long-term lending’s is known as the Bank Rate.
- The clients who borrow through this route are the Government of India, state governments, banks, financial institutions, cooperative banks, NBFCs, etc.
- The rate has direct impact on long-term lending activities of the concerned lending bodies operating in the Indian financial system.
- The rate was realigned with the MSF (Marginal Standing Facility) by the RBI in February 2012.
Source: TMH Ramesh Singh