Q. “The interest rate which the RBI charges on its long-term lending’s known as”?

[A] Bank rate

[B] Repo rate

[C] Reverse Repo rate

[D] Open Market Operations

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