Reserve Bank of India Deputy Governor Rakesh Mohan said on Wednesday that the repo rate would not be cut right now.

"The repo rate was cut about a month ago," Mohan said on the sidelines of a banking conference.

"I am not saying there is a need or no need; it is not happening right now."

Repo is a repurchase agreement or ready forward deal, a secured short-term -- usually 15-day -- loan by one bank to another against government securities.

Legally, the borrower sells the securities to the lending bank for cash, with the stipulation that at the end of the borrowing term it will buy back the securities at a slightly higher price, the difference in price representing the interest.