Tyrone Biggums OP :

Tyrone Biggums OP 101714538 : Reverse Repo Rate is a mechanism to absorb the liquidity in the market, thus restricting the borrowing power of investors. ... During high levels of inflation in the economy, the RBI increases the reverse repo. It encourages the banks to park more funds with the RBI to earn higher returns on excess funds.Jul 23, 2021