<Table> <Tr> <Td> </Td> <Td> This article possibly contains original research . Please improve it by verifying the claims made and adding inline citations . Statements consisting only of original research should be removed . (November 2013) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> This article possibly contains original research . Please improve it by verifying the claims made and adding inline citations . Statements consisting only of original research should be removed . (November 2013) (Learn how and when to remove this template message) </Td> </Tr> <P> Bank rate, also referred to as the discount rate in American English, is the rate of interest which a central bank charges on the loans and advances to a commercial bank . The bank rate is known by a number of different terms depending on the country and has changed over time in some countries as the mechanism used to manage the rate have changed . </P> <P> Whenever a bank has a shortage of funds, they can typically borrow from the central bank based on the monetary policy of the country . </P>

The rate at which the rbi lends money to commercial banks is called