Reverse repo rate

The rate at which the central bank absorbs surplus funds from banks against government securities. In India it was the floor of the policy corridor until April 2022, when the uncollateralised standing deposit facility took that role; the fixed-rate reverse repo remains available at the RBI's discretion, below the floor, and variable rate reverse repo auctions drain extra liquidity at rates between the floor and the repo rate.

Together with the marginal standing facility at the top, the floor defines the band within which overnight money market rates trade. Where the effective rate falls within that band tells you whether the system is short of liquidity or awash with it.

Instruments used to absorb liquidity have changed over time, so it's worth checking the specific facility name in current use against the central bank's own documentation.

The corridor is the mechanism, and the rate is the announcement.