MONETARY POLICY TOOL:
There are several direct and indirect instruments that are used for implementing monetary policy.
- Repo Rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF).
- Reverse Repo Rate: The (fixed) interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the LAF.
- Liquidity Adjustment Facility (LAF): The LAF consists of overnight as well as term repo auctions. Progressively, the Reserve Bank has increased the proportion of liquidity injected under fine-tuning variable rate repo auctions of range of tenors. The aim of term repo is to help develop the inter-bank term money market, which in turn can set market based benchmarks for pricing of loans and deposits, and hence improve transmission of monetary policy. The Reserve Bank also conducts variable interest rate reverse repo auctions, as necessitated under the market conditions.
- Marginal Standing Facility (MSF): A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system.
- Corridor: The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.
- Bank Rate: It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate is published under Section 49 of the Reserve Bank of India Act, 1934. This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes.
- Cash Reserve Ratio (CRR): The average daily balance that a bank is required to maintain with the Reserve Bank as a share of such per cent of its Net demand and time liabilities (NDTL) that the Reserve Bank may notify from time to time in the Gazette of India.
- Statutory Liquidity Ratio (SLR): The share of NDTL that a bank is required to maintain in safe and liquid assets, such as, unencumbered government securities, cash and gold. Changes in SLR often influence the availability of resources in the banking system for lending to the private sector.
- Open Market Operations (OMOs): These include both, outright purchase and sale of government securities, for injection and absorption of durable liquidity, respectively.
- Market Stabilisation Scheme (MSS): This instrument for monetary management was introduced in 2004. Surplus liquidity of a more enduring nature arising from large capital inflows is absorbed through sale of short-dated government securities and treasury bills. The cash so mobilised is held in a separate government account with the Reserve Bank.
- APSC Mains 2020 Tests and Notes Program
- APSC Prelims Exam 2020- Test Series and Notes Program
- Apsc Prelims and Mains 2020 Tests Series and Notes Program
- Apsc Detailed Complete Prelims Notes
pragmatic-ko.com
오늘날 육류 소비량은 10년 전보다 25배 이상 증가했습니다.
bactrim not working for uti
how long does it take for bactrim to work
cephalexin and benadryl
amoxicillin tooth infection
buy metoclopramide cheap reglan 10mg over the counter cozaar 25mg ca
lfchungary.com
벌써 만개한 여섯째 동생을 바라보았다.
mikschai.com
Hongzhi 황제는 “이 스웨터의 출력은 어떻습니까? “라고 즐거워했습니다.
buy generic esomeprazole topiramate ca order topiramate 200mg for sale
twichclip.com
갑자기 Hongzhi 황제와 모든 문무 관리의 마음이 뛰었습니다.
twichclip.com
이미 북부 지방으로 배송된 구근들이 미친듯이 배송되기 시작했습니다.
purchase sumatriptan for sale sumatriptan 25mg usa levofloxacin 250mg for sale
bistroduet.com
모두들 쳐다보았지만 얼굴에 혈색이 도는 뚱뚱한 청년이 보였다.
manzanaresstereo.com
Hongzhi 황제는 눈을 크게 뜨고 눈은 이미 빨갛습니다.
citalopram for anxiety how long does it take to work
depakote maximum dosage
how often to apply voltaren gel
qiyezp.com
Fang Wenjing은 “당신의 명예를 모릅니다 …”라고 경의를 표했습니다.
tizanidine and hydrocodone