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What is a Monetary Policy? (in Hindi)
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This topic Monetary policy will explain you how RBI handles commerial bank with the help of tools.

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thanku sir ji..aur राजदूत जो भारत से विभिन्न देशों में appoint किये गए है उसका video provide कीजिये सर जी..thanku सर जी🙏
  1. Monetary Policy in India What is Monetary Policy Monetary Policy is a Policy made by the central bank of India(RBI) to control money supply in the economy and thereby fight both inflation and deflation DLB


  2. Why it is used It helps maintain price stability and achieve high economic growth DLB 2


  3. Different types of Tools RBl implements monetary policy using certain tools. These are Quantitative Tools and Qualitative Tools. Quantitative Tools are Reserve Ratios(CRR,SLR) OMO (Open Market Operations) and Rates(Repo Reverse Repo , Bank Rate , MSF). DLB


  4. . Cash Reserve Ratio CRR is the minimum percentage of deposits with commercial banks that they need to deposit with the central bank of RBI Currently, the CRR is 4 per cent, though the range of permissible CRR is between 3 and 15 per cent. If the CRR is four, this means that the banks will have to keep Rs 4 with the RBl whenever bank deposits increase by Rs 100. DLB 4


  5. Statutory liquidity ratio Statutory liquidity ratio is the percentage of funds banks need to maintain in the form of liquid assets at any point in time. But, banks need to maintain these funds in the form of government securities, bonds or precious metals, and not in the form of cash. Currently, the SLR is 19.5 per cent DLB


  6. OMO (Open Market Operations) Open Market Operations refer to the purchase and sale of the Government securities (G-Secs) by central bank from / to market. The objective of Open Market Operations is to adjust the rupee liquidity conditions in the economy on a durable basis. DLB 6


  7. Repo Rate Repo rate is the rate at which the RBI lends to commercial banks, typically, against government securities Current rate is 6.50% DLB


  8. Reverse Repo Rate: It is the rate banks charge on funds they invest in government securities with the RBI . When the reverse repo rate rises, banks may raise home loan interest rates, because it becomes more profitable for commercial banks to invest in low-risk government securities instead of lending to people investing in property in India. . When the reverse repo rate falls, home loan interest rates may fall . Current rate is 6.25% DLB 8


  9. Base Rate: * A base rate is lowest interest rate that a bank charges its customers. The base rate is decided by the banks. It is within the rights of the bank management to change it. The RBI does not directly control over this rate , though it may influences it . When the RBI cuts the repo rate, for instance, banks may lower the base rate. . current rate is 6.75% DLB


  10. Marginal Standing Facility Marginal Standing Facility is a new Liquidity Adjustment Facility (LAF) window created by Reserve Bank of India in 2011. . MSF is the rate at which the banks are able to borrow overnight funds from RBl or central bank against the approved government securities. The rate of interest on MSF MSF is above 100 bps above the Repo Rate * The banks can borrow up to 1 percent of their net demand and time liabilities (NDTL) from this facility. Current rate is 6.75% DLB 10


  11. Qualitative Tools LTV(Loan to Value Ratio)--If LTV=50% then I can Get Maximum Loan of Rs 50 Lakh. Moral Suasion----Request by the RBI to the commercial banks DLB


  12. . Objectives of Fiscal Policy 1. To maintain and achieve full employment. * 2. To stabilize the price level of commudities. 3. To stabilize the growth rate of the economy. . 4. To maintain equilibrium in the Balance of Payments. 5. To promote the economic development of underdeveloped countries DLB 14


  13. Balanced Regional Development Reducing the Deficit in the Balance of Payment . Increases National Income Foreign Exchange Earnings * Development of Infrastructure DLB 17


  14. * In context of Indian economy, 'Open Market Operations' refers to? (CSE, 2013) Borrowing by Scheduled banks from RBl Lending by commercial banks to industry and trade . Purchase and sale of govt securities by the RBl. None of the above. DLB 20


  15. . Ans: c) Answer Explanation: Purchase and sale of govt securities by RBl. OMOs are conducted by the RBl via the sale/purchase of government securities (G-Sec) to/from the market with the primary aim of modulating rupee liquidity conditions in the market DLB 21


  16. With reference to Indian economy, consider the following: 1. Bank rate 2. Open Market Operations 3. Public debt 4. Public revenue Which of the above is/are component(s) of Monetary Policy? (CSE, 2015) . 1 only 2,3 and4 1 and 2 1, 3 and 4 DLB 25