Repo Rate Fixing Authority in India

The organization responsible for fixing the repo rate in India is the Reserve Bank of India (RBI).

Understanding the Repo Rate

The repo rate is the interest rate at which the RBI lends money to commercial banks, typically against government securities. It is a key tool used in monetary policy to manage inflation and liquidity in the economy.

Reserve Bank of India's Role

• The RBI, as India's central bank, is mandated to manage the country's monetary policy.
• Decisions regarding the repo rate are made by the Monetary Policy Committee (MPC) headed by the RBI Governor.
• This function is crucial for controlling inflation and supporting economic growth.

Why Other Options Are Incorrect

• NITI Aayog: This is a policy think tank that formulates policy ideas but does not manage monetary policy or fix interest rates.
• Securities and Exchange Board of India (SEBI): SEBI is the regulator for the securities and capital markets, focusing on investor protection and market integrity, not monetary policy rates.
• Ministry of Finance: While the Ministry works closely with the RBI on economic policy, the direct operational responsibility for setting the repo rate lies with the RBI.

Therefore, the Reserve Bank of India is the correct authority.