Bank rate is defined as a rate at which a Central Bank gives away loans or funds to the commercial banks. This concept bankrate is a key to RBI to access and control the money supply chain. A change in bank rates may trigger a ripple effect , as it impacts every sphere of a country's economy. For instance, stock markets prices tend to react to unexpected interest rate changes . A change in bank rates affects customers as it influences prime interest rates for personal loans.

Thank-you.