Reserve Bank Of India has reduced reverse repo rate by 0.25 %. It has been done to increase liquidity. Reverse repo rate is the rate at which banks deposit their money with RBI.
It will increase the amount of loans available to people. Total of 50,000 crore rupees has been distributed among NABARD, SIDBI and NHB. SIDBI will receive 15,000 crore. NHB will receive 10,000 crore .NABARD will get 25,000 crore. Prime Minsiter praised RBI by using twitter.