Repo involves a transaction whereby the Bank will sell bonds to the counterparty with an obligation to repurchase them upon the day of maturity and pay the relevant interest amount, while the counterparty will obtain the securities with an obligation to resell them upon the day of maturity.
Reverse Repo involves a transaction whereby the Bank will obtain securities from the counterparty with an obligation to resell them upon the day of maturity, while the counterparty will sell securities with an obligation to repurchase them and pay the relevant interest amount upon the day of maturity.
The Bank conducts Repo / Reverse Repo transactions to manage the Bank's liquidity.