Which among the following defines Bank Rate ........

Economics- Phase (I & II) Monetary and Fiscal Policy

Which among the following defines Bank Rate?

The rate at which banks place their surplus funds with the RBI

The rate at which banks can borrow against their excess SLR securities to meet additional liquidity requirements

The rate at which the Reserve Bank is prepared to buy or re-discount bills of exchange or other commercial paper eligible

The rate at which banks borrow funds from the Reserve Bank against eligible collaterals

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Explanation:

Under Section 49 of the Reserve Bank of India Act, 1934, the Bank Rate has been defined as "the standard rate at which the Reserve Bank is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase under the Act."