Repo Rate is the interest rate charged when the Commercial Bank borrows funds from RBI against the collaterals of security and bonds. The RBI Repo Rate 2025 is now 5.5% which helps to maintain the liquidity and meet the necessary requirements. The Current Repo Rate 2025 has seen a reduction of 25 basis points. The RBI has reduced the rate by 100 basis points from February 2025 onwards. The given article shall provide the individuals get the updates on Repo Rate In 2025 which is to be charged by the Banks.
RBI Repo Rate 2025
The Reserve Bank of India is the leading Financial Organization which is to lend loans and other finances to the commercial banks. RBI is the Central Bank who is regulating the Currency in the Economy. The RBI is the Central Bank who lends loans to the commercial banks and they charge a certain rate of interest. The Repo Rate is the interest rate charged to the Commercial Banks by the RBI when the former buys money for loans. The Repo Rate is the crucial tool used by the RBI to maintain liquidity in the banking system and also regulates the economy. The Banks when they are in need for a Short Term Security can borrow it through the RBI by pledging securities and the interest rate is being charged which is the Repo Rate.
The repo stands for the repurchase agreement which states that the Bank agrees to buy back the securities it has been pledging at the later date. The Current Repo Rate 2025 has been 5.5% which has been reduced from 6.5% and this is 1% or 100 basis points. The rate has been decided when the inflation will have stood at 3.16% in April 2025. This has been the Third Straight Cut by the Monetary Policy Committee and this has been followed by the reduction in April. The reverse repo rate has been unchanged to 3.35% and the basis point is to decide the rate of change in the financial instruments. To get more details on the Repo Rate, you shall check the post below.
What Is Repo Rate 2025?
- The repo rate interest rate which is charged by the RBI when the loan is given to Commercial Banks.
- The repo rate now has been 5.5% and this has been decreased by 100 basis points which was 6.5% earlier.
- The reverse repo rate has been fixed to 3.35% and the reverse repo rate is the interest rate which is charged by the Commercial Banks when RBI Borrows funds from them.
- The RBI Repo Rate 2025 has been fixed after a 25 basis points decrease in the repo rate and has been brought down to 5.5%.
- The BPS is the unit of measurement which is used in finance to see a rate of change in the index.
Working of Repo Rate 2025
When the Commercial Banks borrow money from RBI, the transaction will attract the rate of interest on the total borrowed amount.
This is also the cost of credit and the interest rate charged is the repo rate.
Repo rate is an agreement which contains the securities like the Treasury Bills and others.
The Commercial Banks get the Cash and the RBI is given the securities.
RBI Repo Rate History
| Date | Repo Rate |
| 6 June 2025 | 5.5% |
| 9 April 2025 | 6% |
| 7 February 2025 | 6.25% |
| 6 December 2024 | 6.5% |
| 9 October 2024 | 6.5% |
| 8 August 2024 | 6.5% |
| 7 June 2024 | 6.5% |
| 5 April 2024 | 6.5% |
How Repo Rates Affect Home Loan?
The buyers who take home loans are tied to repo rates or the ones who move from the existing home loans. The Transmissions are faster and the adjustments to repo rate will be reflected in the EMI outlay.
The banks have to decide as to how much extra interest will be added to the repo rate on the mortgages.
How Repo Rate Affects Fixed Deposit?
The repo rate increase will be beneficial for the investors who are looking for fixed deposits who are having low risk and competitive rates. The changes to the repo rate will impact the lendings of bank and deposit rates.
FAQs On RBI Repo Rate 2025
What is the repo rate?
The repo rate is the interest rate to be paid by the Commercial Banks on the loans taken by RBI.
How much is the Repo Rate of RBI?
The repo rate of RBI has been 5.5% which is decided after reducing 25 basis points.
How much is the reverse repo rate?
The reverse repo rate has been fixed to 3.35%.
