Whats Repo Rate?

We keep hearing about repo rate.
repo rate is the rate at which rbi discount securities like treasury bill to the bank. To meet certain liquidity standards ,from time to time, banks sell their securities like treasury bills to rbi at a discount price called reporate ,for a short period of time like overnight or fort night . after specified time banks repurchase the bill at its face value. so high repo rate high loss for banks or hike in reporate absorbe liquidity from the market by less lending to the banks, which in turn tame inflation.