Multiple choice general knowledge

Bank rate is the rate at which the Reserve Bank of India provides loans to—

  1. Public Sector Undertakings

  2. Scheduled Commercial Banks

  3. Private Corporate Sector

  4. Non-Banking Financial Institutions
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Bank rate is the rate at which the Reserve Bank of India lends to scheduled commercial banks. This is a monetary policy tool used to regulate money supply and credit in the economy. It does not directly lend to PSUs, private corporate sector, or NBFCs at the bank rate - those entities access credit through commercial banks.

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