The rate at which the RBI lends money through a repurchase agreement is the

1. In a repo, the RBI buys a security with an agreed date and price for resale. 2. Money flows to the banking system for that period. 3. The interest on that lending is the **repo rate**. 4. The reverse repo rate applies when the RBI withdraws money instead, which is the mirror operation. _Source: syllabus Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.4 POLICY TOOLS TO CONTROL MONEY SUPPLY_