Section 49 of the RBI Act 1934 requires the Reserve Bank to make public the standard rate at which i...........

Economic Affairs Types of Banks and Banking

Section 49 of the RBI Act, 1934 requires the Reserve Bank to make public the standard rate at which it is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase under that Act. This rate is known as

Base Rate

Repo Rate

Bank Rate

Reverse Repo Rate

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Explanation:

3rd option is correct.

A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is method by which central banks affect economic activity. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.