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The rate at which RBI lends to banks under the LAF against government securities is the:
ASDF rate
BRepo rate
CReverse repo
DBank rate
Answer & Solution
Correct answer: B. Repo rate
1. RBI provides liquidity under the LAF.
2. Banks pledge government securities.
3. The rate charged is the repo rate.
_Source: Reserve Bank of India, Monetary Policy function overview (rbi.org.in)._
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