The Repo Rate or Repurchase Rate is the rate at which RBI lends money to commercial banks to meet their short-term needs.
The Rep Rate is also the Repurchase Rate as
Repo stands for ‘Repurchasing Option’ or ‘Repurchase Agreement’.
A repo rate is technically a repurchase agreement in which commercial banks offer securities such as Treasury Bills to the RBI in return for short-term funds.
The banks also agree to repurchase those securities at a predetermined price.