These may sound technical, but they directly influence the cost of loans, interest rates on deposits and the overall economy. Repo rate: Why your loan EMIs may changeThe repo rate is the interest rate at which the RBI lends money to commercial banks against government securities. Reverse repo rate: Where banks park extra moneyThe reverse repo rate is the interest rate the RBI pays banks for depositing their surplus funds with the central bank. In simple terms, banks borrow from the RBI at the repo rate and lend money to the RBI at the reverse repo rate. Together, the repo rate, reverse repo rate, CRR and SLR are the RBI's key tools for regulating the flow of money in the economy.