Inflation

What is a Contractionary Policy?

January 8, 2018

Contractionary Policy refers to the monetary policy which aims to slow down the economy by introducing a reduction in money supply for lesser money and investment. There are many economic tools used by the Central Bank of every nation like CRR, SLR, Repo, Reverse Repo, Interest Rate etc. to...

What is the meaning of Cash Reserve Ratio?

December 21, 2017

Cash Reserve Ratio is a specific amount of funds which the commercial banks have to keep with the Reserve Bank of India to ensure liquidity in the system. The funds are a part of the Net Demand and Time Liabilities (NDTL). A reduction in CRR leads to more liquidity...

What is Bank Rate?

November 30, 2017

Bank Rate is defined as the rate at which Central Bank gives loans to other domestic banks like commercial banks, cooperative banks, development banks etc. The loans are generally given on a short-term basis. It is the way the Central Bank manages the economic activity in the country. The...

CPI Inflation eases to two-year low

December 13, 2016

The annual Consumer Price Index has cooled-off to two-year low of 3.63%, its lowest level in last 2 years. This has been brought about by the sharp fall in food prices. The figure for October was 4.2%. This is the first macro data to be released by the government...

Venezuela orders 100-unit banknotes out of circulation

December 12, 2016

Venezuela’s President Nicolas Maduro has signed an emergency decree ordering the 100 bolivar bill, the country’s largest banknote, out of circulation in the next 72 hours. This move has been taken to thwart mafias from hoarding cash in Colombia. Investigations conducted by Venezuelan agencies have found that billions of...

RBI has introduced Incremental CRR

November 28, 2016

To absorb the surplus liquidity available in the banking system post demonetisation, the Reserve Bank of India (RBI) has mandated the banks to maintain incremental cash reserve ratio of 100% effective the fortnight ended November 26. It will be applicable to deposits made between September 16 and November 11...

Cash Reserve Ratio

April 21, 2011

The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL). The objective of CRR is to ensure the liquidity and solvency of the Banks. The CRR is...

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