Repo Rate is the rate at which Reserve Bank of India (RBI) lends to the banks. Whenever the banks have any shortage(money to lend) of funds they can borrow it from RBI.
If the repo rate is reduced, it will rate will help banks to get money at a cheaper rate.
[...] Reserve Bank of India (RBI) today lowered the repo rate by 100 basis points to 8 % as against 9 % earlier. Repo rate is the rate at which the RBI lends to [...]