paid by banks to depositors
charged by banks from borrowers
charged on inter-bank loans
charged by Reserve Bank of India on loans given to commercial banks
Answer is Wrong!
Answer is Right!
The correct answer is (d). Bank rate is the rate of interest at which the Reserve Bank of India lends money to commercial banks. It is the benchmark interest rate in India and is used by banks to set their own lending and deposit rates.
(a) is incorrect because the rate of interest paid by banks to depositors is called the deposit rate.
(b) is incorrect because the rate of interest charged by banks from borrowers is called the lending rate.
(c) is incorrect because the rate of interest charged on inter-bank loans is called the inter-bank rate.