The correct answer is Bank Rate. Bank Rate is the rate of interest commercial banks have to pay to RBI if they borrow money from it in case of a shortage of reserves. Bank Rate is the rate of interest offered by the central bank to commercial banks. It is also called the rediscount rate. It is always greater than the repo rate. Additional InformationStatutory Liquidity Ratio (SLR):It is the ratio of liquid assets, which all commercial banks have to keep in the form of cash, gold and unencumbered approved securities. It is equal to or not more than 40% of their total demand and time deposit liabilities. The current SLR is 18%. Cash Reserve Ratio (CRR):It is the percentage of cash that needs to be kept in reserves with RBi without any floor rate or ceiling rate. The current CRR is 4. 00%. Important PointsReserve Bank of India (RBI):RBI was set up on the basis of the Hilton Young Commission recommendation in April 1935, with the enactment of the RBI Act, 1934. The headquarters of RBI is in Mumbai. Current Governor is Shaktikanta Das