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SSC CGL 2020 PYQ — Question 50

SSC CGL - 3rd March 2020 Shift 1 • General Awareness • Q50

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Which of these institutions fixes the Repo Rate and the Reverse Repo Rate in India?

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Correct answer: C

Explanation

The correct answer is option 3 i.e. Reserve Bank of India.

  • In short, the RBI absorbs surplus money from banks against the collateral of eligible government securities on an overnight basis. 
  • This happens under the Liquidity Adjustment Facility or LAF under the Reverse Repo Rate.
  • The Reserve Bank of India is India's central bank which is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.