Monetary Policy of RBI | Objectives, Instruments | Process

Monetary Policy of RBI: The Reserve Bank of India (RBI) is the central bank of India which is responsible for regulating various financial institutions such as scheduled banks, non-scheduled banks and Non-Banking Finance Institutions (NBFCs). The Reserve Bank of India (RBI) being a monetary authority (Statutory Body) of India is also responsible for formulating and … Read more

What is Monetary Policy? Objectives, Types | Instruments of Monetary Policy

What is Monetary Policy? “The Monetary Policy is the sets of policies (rules and regulations or activities) which are adopted by the Monetary Authority (central bank) of a country to regulate the money supply, to influence inflation rate, interest rates, unemployment rate and to stabilise the currency exchange rate with respect to other currencies.” … Read more

Open Market Operations (OMO) | Meaning, Process | Functions

Open Market Operations: “An Open Market Operations refers to the exchange of securities between the central bank and the commercial banks or group of commercial banks or other financial institutions to regulate the supply of money and to stabilise inflation rate, exchange rate and interest rates.” In other words, an Open Market Operations (OMO) is … Read more

Market Stabilisation Scheme (MSS) | Meaning, Definition | MSS Bonds 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) | Meaning, Definition | History, Instruments

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