Different interest rates under RBI monetary policy Pdf file download usefully for all competitive exam

         

Interest Rate in India averaged 6.69 percent from 2000 until 2017, reaching an In 2014, the primary objective of the RBI monetary policy became price Second, the prices of pulses are clearly reeling under the impact of a supply to be robust, cushioning the impact of a slowdown in other constituents.Price

Stability Price:-
Stability implies promoting economic development with considerable emphasis on
M price stability.  The centre of focus is to facilitate the environment which is favourable to the architecture that enables the developmental projects to run swiftly while also maintaining reasonable price stability.

Controlled Expansion Of Bank Credit :-
One of the important functions of RBI is the controlled expansion of bank credit and money supply with special attention toseasonal requirement for credit without affecting the output.

Promotion of Fixed Investment:-
The aim here is to increase the productivity of investment by restraining non essential fixed investment.

Restriction of Inventories and stocks:-
  Over filling of stocks and products becoming outdated due to excess of stock often results in sickness of the unit. To avoid this problem the central monetary authority carries out this essential function of restricting the inventories. The main objective of this policy is to avoid over-stocking and idle money in the organization.

To Promote Efficiency:-
It is another essential aspect where the central banks pay a lot of attention. It tries to increase the efficiency in the financial system and tries to incorporate structural changes such as deregulating interest rates, ease operational constraints in the credit delivery system, to introduce new money market instruments etc.

Reducing the Rigidity :-
RBI tries to bring about the flexibilities in the operations which provide a considerable autonomy. It encourages more competitive environment and diversification. It maintains its control over financial system whenever and wherever necessary to maintain the discipline and prudence in operations of the financial system.

*.Different interest rates under RBI monetary policy Pdf file download usefully for all competitive exam

Post about topic

1. SLR (Statutory Liquidity Ratuo) :-
2. CRR (Cash Reserve Ratuo) :-
3. Bank Rate: -
4. Repo Rate: -
5. Reverse Repot: -
6. PLR (Prime Lending rate) :-
7. Beserve: -

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