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Monetary policy instruments .. MCLR (in Tamil)
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Monetary policy overall conclusion

Ajith C
Engineering Graduate , Educator , Aspirant , Nature lover

U
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video bahut bahut bahut hi mahatwpurn he dhanyawad
  1. Monetary policy Banking terms, methods, schemes


  2. Instruments of Monetary Policy Repo rate Reverse repo Liquidity Adjustment facility Marginal standing facility Bank rate Cash reserve ratio Statutory liquidity ratio Open market operations . Market stabilisation schemes


  3. 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). Repo Rate


  4. 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 Reverse Repo RATE


  5. Liquidity Adjustment Facility (LAF) 4. Whreb nturn can set market 1. 2. 3. Consists of overnight as well as term repo auctions BOTH REPO & REVERSE REPO FUNCTIONS Develop the inter-bank term money market based benchmarks for pricing of loans and deposits


  6. Marginal Standing Facility (MSF) 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. 1% of NDTL( NET DEMAND & TIME LIABILITIES) . REPO MSF


  7. RBI charges on long time lendings Client who borrow through this route GOl, State govt, Co-operative banks, Financial institutions NBFC's, etc. Bank Rate This rate has been aligned to the MSF rate


  8. 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. CRR TOTAL money


  9. Minimum interest rate, below which a bank is not permitted to lend, barring a few exceptional cases as permitted by the Reserve Bank of India (RBI). MCLR A. Tenor Premium B. Marginal cost of fund C. operating cost Marginal Cost of Funds based Lending Rate (2016) D. negative carry on account of CRR


  10. Statutoryy Liquidity Ratio ties, ash and The share of NDTL that a bank is required to maintain in safe and liquid assets, such as, unencumbered government Changes in SLR often influence the availability of resources in thee banking system for lending to the private sector SLR)


  11. This instrument for monetary management was introduced in 2004. Market Stabilisation Scheme (MSS) 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.