Understanding Repo Rate and MSF Rates

Understanding these two rates (Repo rates and MSF rates) lets you make an informed decision on when to enter or exit specific stocks and / or mutual funds. Even if not that, it helps you understand the general market movement whenever RBI (Reserve Bank of India) decides to alter these rates.

What is Repo, Reverse Repo and CRR

What is a Repo Rate?
Repo is the short for "repurchase option" for the central bank of the country e.g. RBI. It is a means of short-term borrowing, wherein banks sell approved government securities to RBI and get funds in exchange. In other words, in a repo transaction, RBI repurchases government securities from banks, depending on the level of money supply it decides to maintain in the country's monetary system.