This article shows you the current and historical values of the RBI repo and reverse repo rates.

📚 Table of Contents

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• What are the current repo and reverse repo rates?
  • What is the latest repo rate?
  • What is the latest reverse repo rate?
• What is RBI doing with the repo rate recently?
• Rate history in India
• Understanding the Repo Rate
• Understanding the Reverse Repo Rate

What are the current repo and reverse repo rates?

What is the latest repo rate?

The latest repo rate is 6%. This rate was last reviewed by RBI on 09 Apr 2025.

What is the latest reverse repo rate?

The latest reverse repo rate is 3.35%. This rate was last reviewed by RBI on 07 Feb 2025.

What is RBI doing with the repo rate recently?

The repo rate is currently going up in India due to inflationary pressure.

RBI, after hiking the Repo rate from 4.00% to 6.50% in quick succession, has finally started cutting the repo rate:

• 09-Apr-2025: RBI cut the repo rate to 6.00% from 6.25%.
• 07-Feb-2025: RBI cut the repo rate to 6.25% from 6.50%.
• 06-Apr-2023 to 06-Feb-2025: RBI kept the repo rate unchanged at 6.50%.
• 08-Feb-2023: RBI hiked the repo rate to 6.50% from 6.25%.
• 07-Dec-2022: RBI hiked the repo rate to 6.25% from 5.90%.
• 30-Sep-2022: RBI hiked the repo rate to 5.90% from 5.40%.
• 05-Aug-2022: RBI hiked the repo rate to 5.40% from 4.90%.
• 08-Jun-2022: RBI hiked the repo rate to 4.90% from 4.40%.
• 04-May-2022: RBI hiked the repo rate to 4.40% from 4.00%.

The hike from 2022 was a part of inflation-taming measures put in place by global central banks.

As inflation had been rising as the economy recovered, the repo rate rise was inevitable. As inflation is now cooling and Budget 2025 has seen tax rates to reduce, the repo rate has been cut for the first time since May 2020. A further cut was seen in Apr 2025.

Rate history in India

The charts below show the history of the RBI repo and reverse repo rates over time:

Chart: Arthgyaan • Source: RBI • Get the data

Chart: Arthgyaan • Source: RBI • Get the data

Understanding the Repo Rate

Repo rate is the rate of interest RBI, the country’s central bank, charges all other banks when borrowing from RBI. The higher the repo rate, the more banks have to pay RBI when borrowing. As a result, the bank charges higher interest rates to people who borrow. The bank offers higher rates for depositors in savings accounts and fixed deposits.

The repo rate, therefore, directly impacts

• savings account, fixed deposit and recurring deposit rates
• borrowing rates for personal, gold, car, home and other loans
• rates of loans that are given to businesses

The basic interest rate equation for a loan is:

Rates for loans = Base rate + Spread

The base rate is derived from the RBI Repo rate. The spread depends on the loan type and the borrower’s credit quality. For example, home loans have a lower spread since they are collateralised. In contrast, personal loans, being without collateral, have a higher spread.

The repo rate, and its counterpart, the reverse repo rate, which RBI offers to banks for depositing money with RBI, are crucial monetary policy tools that affect liquidity and inflation. The higher the repo rate, the higher the loan rates and the more difficult it is to borrow. The lower the amount of borrowing, the less the money supply since borrowers spend their loans for their purpose. Less spending by borrowers or depositors, who are attracted by higher deposit rates, the lesser the amount of money available in the economy, thereby cooling inflation.

Understanding the Reverse Repo Rate

When a bank has excess money, it can lend to the RBI and get some interest. This interest rate that the RBI offers to banks is the reverse repo rate. The reverse repo rate is a monetary policy tool where the RBI can remove excess liquidity from the economy by offering higher rates.

When banks deposit their money with the RBI, they get government securities in return as collateral.