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Monetary Policy

Bank Rate

Understand Bank Rate in India, its meaning, earlier monetary policy role, current role as a penal rate for CRR and SLR shortfalls, linkage with MSF Rate and NDTL for UPSC Economy.

Monetary Policy

Contractionary Monetary Policy

Understand contractionary monetary policy, its meaning, objectives, instruments and economic impact, including Repo Rate, CRR, SLR, SDF, Reverse Repo and Open Market Operations for UPSC Economy.

Monetary Policy

Expansionary Monetary Policy

Understand expansionary monetary policy, its meaning, objectives, instruments and economic impact, including Repo Rate, CRR, SLR, SDF, Reverse Repo and Open Market Operations for UPSC Economy.

Monetary Policy

Standing Deposit Facility (SDF)

Understand Standing Deposit Facility (SDF), how RBI absorbs liquidity without collateral, its background, eligibility, SDF rate, role in financial stability and position as the floor of the LAF corridor.

Monetary Policy

Marginal Standing Facility (MSF)

Understand Marginal Standing Facility (MSF), how it works, its key features, MSF rate, use of SLR securities, difference from Repo and its position in the LAF corridor for UPSC Economy.

Monetary Policy

Liquidity Adjustment Facility (LAF)

Understand the Liquidity Adjustment Facility (LAF), its meaning, purpose, eligible participants, Repo, Reverse Repo, SDF, MSF and the LAF corridor for UPSC Economy.

Monetary Policy

Reverse Repo Rate

Understand Reverse Repo Rate, how it works, its role in absorbing banking liquidity, impact on inflation and credit, and how the Standing Deposit Facility replaced fixed rate reverse repo as the LAF corridor floor.

Monetary Policy

Repo Rate

Understand Repo Rate, how repo transactions work, why it is called the policy rate and how RBI uses changes in the repo rate to influence inflation, borrowing, investment and economic growth.

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