Bank Rate implies the rate of interest

1. The Bank Rate is a monetary policy tool used by a central bank, such as the Reserve Bank of India (RBI). 2. It signifies the rate at which the central bank is willing to buy or rediscount eligible Bills of Exchange or other commercial papers from Commercial Banks. 3. Essentially, it is the rate at which the RBI provides loans to commercial banks by discounting their securities. 4. Option (A) is incorrect; the rate paid by RBI on deposits of commercial banks relates to the Reverse Repo Rate or Standing Deposit Facility rate. 5. Option (B) refers to the lending rates charged by commercial banks to their customers. 6. Option (C) refers to the yield or interest rate on Bonds.