Why is there a band there? Also, more importantly, and even a dumber question, if repo rate is according to definition, rate at which, you know, banks can borrow money from the RBI, why is it that banks don't lend, uh, borrow all of that money from RBI? Why even go for raising money from outside? Maybe through this you can also help me understand how banks eventually fund their money, what all, uh, what all options are there, and why is it that banks cannot just take all the money from the RBI, and why even go raise money at two point two five bps spread?

So I am actually right now going to partly jump into the banking domain, which is not my domain, to be very honest, and some banker will hear this interview and say ki tumne galat bola.

Lekin I will try and attempt.

Okay, so let's start with your first question, which is what is repo rate? Repo is nothing but a short form for repurchase, so repo rate is nothing but a repurchase rate, okay? From a viewer standpoint, just to, uh, simplify it, all central banks across the world manage, uh, the interest rate policy or the monetary policy around a fulcrum, and that fulcrum is the repo rate or the policy rate.

You can call it the policy rate as well.

Effectively, the repo rate is supposed to guide the markets as to where the risk-free, uh, one-day borrowing or lending will happen, okay? This is not only a rate at which...

While factually you are right that this is a rate at which the RBI, uh, lends to the system when the system offers it collateral.

So sorry, if you could explain that also, how FCNR is solving that problem.