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Monetary policy - Monetary policy committee and it's function (in Tamil)
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Monetary policy committee & RBI functions

Ajith C
Engineering Graduate , Educator , Aspirant , Nature lover

U
Unacademy user
Thanks sir for such a awesome course. Eagerly waiting for the upcoming lessons.. 😊
  1. Monetary policy Banking terms, methods, schemes


  2. The Monetary Policy Process . Monetary Policy Committee (MPC) Assist MPD MPC Monetary Policy Department (MPD) The Financial Market Committee (FMC) Meets daily to review the liquidity conditions


  3. Monetary policy Committee One officer of the RBI to be nominated by the Central Board #3 Economist from different stakeholders Deputy Governor Of RBI Chairperson, ex officio The Monetary Policy Committee (MPC) constituted by the Central Government under Section 45ZB determines the policy interest rate required to achieve the inflation target.


  4. 1+1+1+3 6 members AT LEAST MEET 4 TIMES A YEAR GENERALLY QUARTERLY o MPC CHANGE OR KEEP THE REPO RATE LOOSEN OR TIGHTEN


  5. MPR Once in every six months, the Reserve Bank is required to publish a document called the Monetary Policy Report. A. sources of B. Forecast of inflation for 6-18 months ahead inflation


  6. 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


  7. Under the amended RBI Act, the monetary olicy making is as under: The MPC is required to meet at least four times in a year. The quorum for the meeting of the MPC is four members. Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.


  8. 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


  9. 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


  10. 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


  11. 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)


  12. Reserve CRR 4% SLR 23.5% 100% 9.5 4 + 19.5 23.5% 76.5% only bank can use for bussiness 76.5


  13. Monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply and availability of credit with a view to achieving the ultimate objective of economic policy About By RBI (Reserve bank of india)


  14. 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