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Bank rate is the rate at which:
a bank lends to the public
the Reserve Bank of India lends to thepublic
the Government of India lends to othercountries
the Reserve Bank of India gives credit to commercialbanks
Bank rates influence lending rates of commercial banks. A higher bank rate will translate to higher lending rates by the banks. In order to curb liquidity, the central bank can resort to raising the bank rate and vice versa.
By: Parvesh Mehta ProfileResourcesReport error
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