what is reverse repo rate in india

Reverse repo rate is the rate at which the central bank of a country borrows money from commercial banks within the country. In India, the central bank is the Reserve Bank of India (RBI), and the reverse repo rate is one of the monetary policy instruments used by the RBI to control the money supply in the country. An increase in the reverse repo rate will decrease the money supply, while a decrease in the reverse repo rate will increase the money supply, other things remaining constant. The current reverse repo rate in India is 3.35% .