RBI CONCEPTS:The Monetary Policy Committee #9(PART-3)

  • Oracle IAS, the best coaching institute for RBI grade B/NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues.
What is Monetary Policy Committee?
  • It is the committee which will decide India’s Monetary Policy.
  • The formation of the monetary policy committee was mooted by the Urjit Patel committee(2016). The current mandate of the committee is to maintain 4% annual inflation until March 31, 2021, with an upper tolerance of 6% and a lower tolerance of 2%.
  • The committee suggested that monetary policy be rule-based and not discretion-based. The final decision on monetary policy should not lie with the RBI governor alone but on a group of people.

 

  • Composition of MPC
    MPC will be a 6 member committee:
    • 3 members will be from RBI. These 3 members would include the governor who will also be the ex-officio chairperson of the committee.
    • 3 members will be appointed by the central govt. These members should be experts in the field of finance or banking or economics or monetary policy. They will have a tenure of 4 years and will not be eligible for reappointment.

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Continue reading “RBI CONCEPTS:The Monetary Policy Committee #9(PART-3)”

RBI CONCEPTS:The Monetary Policy Framework #8 (part 2)

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The Monetary Policy Framework Continue reading “RBI CONCEPTS:The Monetary Policy Framework #8 (part 2)”

RBI CONCEPTS: MONETARY POLICY #7(Part-1)

Oracle IAS, the best coaching institute for RBI grade B/NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues.

What is monetary policy?

Monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply and availability of credit with a view to achieving the ultimate objective of economic policy. Continue reading “RBI CONCEPTS: MONETARY POLICY #7(Part-1)”

RBI Gr-B News – Role of RBI Governor #2

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==> Context

• The Reserve Bank of India governor’s unexpected resignation has created concern among the media, academicians and investors about the continuity of policy.

• Lack of appropriate transition has been covered, to some extent, by the quick appointment of the new governor. Continue reading “RBI Gr-B News – Role of RBI Governor #2”

RBI Concepts: Role and Functions of EXIM Bank and ECGC #9

Oracle IAS, the best coaching institute for RBI grade B/NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues.

Role and Functions of EXIM Bank(Export–Import Bank ):-
1) Line of Credit:
Line of credit refers to the credit required by the importers and exporters to carry on with their regular business. EXIM bank provides various types of pre-shipment and post-shipment finance especially to exporters to ensure that they are able to fulfil their export orders as planned. Continue reading “RBI Concepts: Role and Functions of EXIM Bank and ECGC #9”

RBI Concepts: Types of Bank Deposits and Advances for NRIs/NRIs/PIOs/OCBs #8

Oracle IAS, the best coaching institute for RBI grade B/NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues.

1) Ordinary Non-Resident Rupee Accounts (NRO Accounts):
These are Rupee denominated non-repatriable accounts and can be in the form of savings, current recurring or fixed deposits. These accounts can be opened jointly with residents in India. When an Indian National / PIO resident in India leaves for taking up employment, etc. outside the country, his bank account in India gets designated as NRO account. Continue reading “RBI Concepts: Types of Bank Deposits and Advances for NRIs/NRIs/PIOs/OCBs #8”

RBI CONCEPTS: Role of commercial banks #7

Oracle IAS, the best coaching institute for RBI grade B//NABARD/SEBI in Dehradun (Uttarakhand), brings to you views on important issues..

1) Credit Creation:
Commercial banks have to ensure that enough credit is available for people to borrow from the bank to carry out their daily business activities. Wherever a shortage of credit is observed, the commercial banks are expected to provide additional funds and make sure that the shortage gap is filled. Continue reading “RBI CONCEPTS: Role of commercial banks #7”