Liquidity Adjustment Facility (LAF) is the primary instrument of Reserve Bank of India for modulating liquidity and transmitting interest rate signals to the market. It refers to the difference...
Repo is a short term borrowing for dealers in the Government securities. In India, Repo and Reverse Repo transactions are done only in Mumbai and only between the...
Base Rate is the minimum lending rate that banks can charge their customers from July 1, 2010. Prior to this all lending rates were pegged to a Bank’s...
When a person borrows some money from another person, this money comes at an interest which can also be called the “Opportunity Cost” of the money. The amount...
Credit control is most important function of Reserve Bank of India. Credit control in the economy is required for the smooth functioning of the economy. By using credit...
Open Market Operations refer to the purchase and sale of the Government securities (G-Secs) by RBI from / to market. The objective of Open Market Operations is to...
The question arises is that what is the difference between Narrow Money (M1), Broad Money (M3) and Reserve Money? This is very important question. When we say that...
During the 1970s RBI introduced the Money Stock Measures. These were appropriately changed on the recommendation of the Y B Reddy Committee in the late 1990s. Supply of...
Objectives of the monetary policy in India have gone through a process of gradual evolution and have included price stability, ensuring adequate flow of credit to various productive...
