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Monetary policy overview (in Tamil)
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Overview of course monetary policy & it's instruments

Ajith C
Engineering Graduate , Educator , Aspirant , Nature lover

U
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The only person who's actually making real good use of his wealth.
  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. 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


  4. 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


  5. 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


  6. 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


  7. 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