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Raj Verdhan www.thesisbusiness.com Market Stabilisation Scheme (MSS) – The Market Stabilisation Scheme (MSS) refers to a special type of instrument of monetary policy of the central bank of any country usually implemented to absorb the excess liquidity from the economy. Under this scheme (MSS), the central bank issues some securities such as treasury bills, government bonds, etc in the market … Read more
Liquidity Adjustment Facility (LAF): “The Liquidity Adjustment Facility (LAF) is an instrument of monetary policy of the Reserve Bank of India through which commercial banks or other financial institutions or primary dealers manage their surplus funds as well as deficit of funds by Repurchase Option Agreement keeping their Government of India securities such as … Read more
Marginal Standing Facility (MSF): “Marginal Standing Facility (MSF) refers to the collateralised short term borrowing facility for the scheduled commercial banks and other financial institutions from the Reserve Bank of India (RBI).” In other words, MSF is an instrument for the commercial banks and other financial institutions to avail the short term (overnight or one … Read more
In this lesson, we will discuss one of the important monetary instruments of the Reserve Bank of India. You will be able to learn the following terms by the end of this lesson. What is Bank Rate? Usage of Bank Rate Repo Rate vs Bank Rate Bank Rate: “The Bank Rate is the rate of … Read more
Statutory Liquidity Ratio (SLR): “The Statutory Liquidity Ratio (SLR) refers to the certain proportion of NDTL (Net Demand and Time Liability) of the commercial banks that has to be maintained with itself in form of liquid assets such as cash, gold or government approved securities by the commercial banks.” The Reserve Bank of India (RBI), … Read more
