To
begin with, Repo Rate is precisely the rate at which the Central Bank of the
country lends money to all commercial banks during the event of shortage of
funds.
In
a recent financial move the RBI Governor, Dr. Raghuram Rajan
announced a cutback on the current repo rate from 7.25 percent to 6.75 percent,
which was brought into effect immediately on 29th September, 2015.
This repo rate deduction of 50 basis points has been more than welcomed by the textile industry of the country, simply for the
reason that this cut will majorly benefit capital-intensive industries.
