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    Status of Latest Monetary and Credit Policy in India

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    salil12356
    This document presents on the status of the latest monetary and credit policy in India. It introduces monetary policy as the central bank's control of money supply to achieve general economic goals. The scope of monetary policy depends on the level of monetization and capital market development. Instruments of monetary policy include open market operations, reserve requirements, credit controls, and moral suasion. The document discusses India's monetary policy goals and reviews policy from 2009 to present. It outlines challenges like supporting aggregate demand, boosting credit flows, managing government borrowing, and ensuring financial stability while withdrawing crisis-related liquidity measures. Limitations of monetary policy include time lags, forecasting difficulties, and underdeveloped markets.

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    Status of Latest Monetary and Credit Policy in India

    Uploaded by

    salil12356
    86 views7 pages
    This document presents on the status of the latest monetary and credit policy in India. It introduces monetary policy as the central bank's control of money supply to achieve general economic goals. The scope of monetary policy depends on the level of monetization and capital market development. Instruments of monetary policy include open market operations, reserve requirements, credit controls, and moral suasion. The document discusses India's monetary policy goals and reviews policy from 2009 to present. It outlines challenges like supporting aggregate demand, boosting credit flows, managing government borrowing, and ensuring financial stability while withdrawing crisis-related liquidity measures. Limitations of monetary policy include time lags, forecasting difficulties, and underdeveloped markets.

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    Macro economics

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    “Status of latest monetary and credit policy in india”

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    This document presents on the status of the latest monetary and credit policy in India. It introduces monetary policy as the central bank's control of money supply to achieve general economic goals. The scope of monetary policy depends on the level of monetization and capital market development. Instruments of monetary policy include open market operations, reserve requirements, credit controls, and moral suasion. The document discusses India's monetary policy goals and reviews policy from 2009 to present. It outlines challenges like supporting aggregate demand, boosting credit flows, managing government borrowing, and ensuring financial stability while withdrawing crisis-related liquidity measures. Limitations of monetary policy include time lags, forecasting difficulties, and underdeveloped markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    86 views7 pages

    Status of Latest Monetary and Credit Policy in India

    Uploaded by

    salil12356
    This document presents on the status of the latest monetary and credit policy in India. It introduces monetary policy as the central bank's control of money supply to achieve general economic goals. The scope of monetary policy depends on the level of monetization and capital market development. Instruments of monetary policy include open market operations, reserve requirements, credit controls, and moral suasion. The document discusses India's monetary policy goals and reviews policy from 2009 to present. It outlines challenges like supporting aggregate demand, boosting credit flows, managing government borrowing, and ensuring financial stability while withdrawing crisis-related liquidity measures. Limitations of monetary policy include time lags, forecasting difficulties, and underdeveloped markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Presentation

    on
    “Status of latest monetary and credit policy in india”

    Presented by :

    Abhishek P. Singh
    Salil Srivastava
    Abhishek Tiwari
    Piyush Chunarkar
    Praveen Mayar
    Introduction
    • Economists have defined monitory policy as a “ policy employing central bank’s
    control of the supply of money as an instrument of achieving the objective of
    general economic policy”
    • Monetary policy is essentially a programme of action undertaken by the monetary
    authorities generally the central bank to control and regulate the supply of money
    with the public and the flow of credit with a view to achieving predetermined
    macroeconomic goal.
    • Scope of monetary policy :- the scope of monetary policy spans the area of
    economic transactions and the macroeconomic variables that monetary authorities
    can influence and alter through the monetary policy.
    • Scope of monetary policy depend on two factor
    • the level of monetized economy.
    • the level of development of the capital market.
    • Instruments of monetary policy :-

    • Quantitative measures of monetary control

    • open market operations

    • discount rate or bank rate

    • Cash reserve ratio

    • Qualitative or selective credit control

    • credit rationing

    • change in lending margins

    • moral suasion

    • direct controls.
    Indian context

    • Monetary policy of RBI Goals of Monetary Policy


    • Status of monitory policy 2009-
     As per global scenario
     As per domestic scenario
     Features
     Monetary Policy Stance
     Developmental and Regulatory Issues
    Challenges & Issues

    • Supporting the drivers of aggregate demand to enable the economy to return to its high
    growth path.
    • Boosting the flow of credit to all productive sectors of the economy.
    • Managing the large government borrowing programme in 2009-10 in a non-disruptive
    manner.
    • Restoring the fiscal consolidation process.
    • Ensuring an orderly withdrawal of the large liquidity injected in the system since September
    2008 by the Reserve Bank to support the economy's productive requirements.
    • The continued challenge of preserving the stability of our financial system drawing from the
    lesson of the global crisis.
    The limitation of monetary policy
    • The time lag
    • Problem in forecasting
    • Non banking financial intermediaries
    • underdevelopment of money and capital markets
    THANK YOU

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