Apna Sapna Money-Money. RBI. Monetary Policy and Industrial Policy. By- Rahul Jain. Monetary Policy.
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The term "monetary policy" refers to the actions undertaken by a central bank, such as the RBI, to influence the availability and cost of money and credit to help promote national economic goals.
1. Reduction in bank rate, specific interest rate on loans and savings 2. Buying of government securities from bank to increase the money supply 3. Reduction in the variable reserve ratios like statutory liquidity ratio and cash reserve ratio.
(Mishra & Puri)
1. Rise in bank rate, specific interest rate on loans and savings
2. Selling of government securities to bank to curb inflation and to contract the money supply
3. Increase in the variable reserve ratios like statutory liquidity ratio and cash reserve ratio.
In economics, inflation is an increase in the general level of prices of a given kind. General inflation is referred to as a rise in the general level of prices.
Use of price index system for measuring inflation. For example, The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.
Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
1. Monetary authority
The Indian government has removed bureaucratic controls on industry, under its liberalization policy. However, licensing and restrictions still exist in the following sectors:
GREAT OPPORTUNITIES FOR US FDI!
Note – The exemption from licensing also applies to all substantial expansion of existing units.
Foreign Direct Investment (“FDI”)
Opportunities exist for investing in India in sectors as diverse as tourism and infrastructure, petrochemicals and mining technology and engineering, real estate, biotechnology, bio-informatics and nanotechnology. India is also being seen as the global destination for R&D, engineering design and prototype development and a manufacturing hub for high technology products.
According to the current policy, FDI is not permitted in the following sectors –
Certain sectors, namely: