Bank Rate implies the rate of interest
- paid by RBI on deposits of commercial banks
- charged by banks on loans
- payable on bonds
- at which RBI discounts bills of exchange
Explanation
Option (d) is correct
- The Bank Rate is the rate at which the RBI lends to scheduled commercial banks and serves as the rate for discounting bills of exchange and providing advances. It is defined as the interest charged by the RBI on long-term loans to banks and is generally aligned with the repo rate.
