What does REPOS mean? What is the full form of REPOS?
The full form of REPOS is Ready Forward Contracts
Ready forward contract (Repos)
Repo is an abbreviation for Repurchase agreement, which involves a simultaneous “sale and purchase” agreement. When banks have any shortage of funds, they can borrow it from Reserve Bank of India or from other banks. The rate at which the RBI lends money to commercial banks is called repo rate, a short term for repurchase agreement. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive
REPOS
means
Ready Forward Contracts
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