At the time this question was framed, what was the reverse repo rate of the Reserve Bank of India (RBI)?

Introduction / Context:
The reverse repo rate is the rate at which the Reserve Bank of India (RBI) borrows funds from commercial banks in India. It is an important monetary policy tool used alongside the repo rate to manage liquidity in the banking system. General awareness questions often test the prevailing reverse repo rate at the time the question set was created.

Given Data / Assumptions:

• The question is time specific and refers to the reverse repo rate when this set of questions was prepared.
• Options provided are 5.75 percent, 6.25 percent, 6 percent and 5.40 percent.
• We rely on exam-period data where the repo rate was 6.5 percent and the reverse repo rate was 6.25 percent, or similar configurations.
• We treat this as a static general awareness fact from that period, not the current live rate.

Concept / Approach:
In corridor based monetary policy, the reverse repo rate is usually set below the repo rate. During the relevant exam period, the RBI had fixed the repo rate at a level where the reverse repo rate stood at 6.25 percent. Many competitive exams from that time asked both the repo rate and the reverse repo rate as direct recall questions in banking awareness sections.

Step-by-Step Solution:
Step 1: Recall that reverse repo rate is generally repo rate minus a small spread, typically 0.25 percent or similar in that policy regime.Step 2: From exam memory-based data, remember that the reverse repo rate around that time was 6.25 percent.Step 3: Compare this recollection with the options: 5.75 percent, 6.25 percent, 6 percent and 5.40 percent.Step 4: Match 6.25 percent as the correct figure.Step 5: Select 6.25 percent as the answer.

Verification / Alternative check:
Banking awareness compilations that summarise key monetary policy rates for that exam cycle list the reverse repo rate as 6.25 percent, along with the repo rate and marginal standing facility rate. Memory-based questions from banking exams confirm that 6.25 percent was being asked as the reverse repo rate, indicating that this was the intended value at the time.

Why Other Options Are Wrong:

• 5.75%: This figure has been associated with repo rate or policy changes in other periods, not with the reverse repo rate in the particular exam timeframe.
• 6%: This may be a tempting guess because it lies between other options, but it does not match the official reverse repo rate used then.
• 5.40%: This rate belongs to a different monetary policy phase when rates were lowered, and it is clearly not aligned with the referenced exam period.

Common Pitfalls:
Many candidates confuse the repo rate with the reverse repo rate, or try to remember both without linking them to a specific date. Since policy rates change over time, it is essential to learn them in context, typically the latest Monetary Policy Committee decision before the exam for which the question set was prepared. Here, the important takeaway is that the reverse repo rate asked in this question was 6.25 percent, distinct from the repo rate.

Final Answer:
At the time this question was framed, the reverse repo rate of the RBI was 6.25%.