The Reserve Bank of India hiking reverse repo rate in its recent April policy has served its intended purpose. The overnight call rate which, until then, was hovering far below the RBI’s key policy repo rate, at 5.7 per cent levels, has moved up to 6-6.1 per cent levels over the past month. The 3-month T-bill rate too has gone up by 20-30 basis points since April. RBI had raised the reverse...