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The Reserve Bank of India unexpectedly cut its key deposit rate, for the second time in three weeks, to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy amid the Corona Virus lockdown.

This week. Prime Minister Narendra Modi extended until May 3 a lockdown of the population of 1.3 billion as India's tally of infections exceeded 10,000, despite the three-week shutdown ordered from March 24.

The RBI cut its Reverse Repo Rate by 25 basis points (bps) to 3.75% with immediate effect. Governor Shaktikanta Das told a video conference. The rate had already been cut by 90 bps on March 27.

"The surplus liquidity in the banking system has risen significantly in the wake of government spending and the various liquidity enhancing measures undertaken by the RBI", he added.

"In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed-rate Reverse Repo Rate."

Source: Business Today, April 17, 2020.

On the basis of above imaginary information, answer the following questions:

When Reverse Repo Rate is reduced, it.................

A) discourages the commercial banks to park their surplus funds with RBI

B) encourages the commercial banks to park their surplus funds with RBI

C) Both [a] and [b]

D) Neither [a] nor [b]