How do the increased reverse repo rates affect general mass?
It is a fact that lending of money to RBI is risk less and moreover getting revenue at an increased rate of interest is actually an icing on the cake for the commercial banks. But in turn it affects the general public because if bank uses all its liquid cash in lending RBI then how do you think there would be money available for the mass. So in emergency the general people get no other choice rather than going to the private lenders who lend money at a pretty higher rate.
