RBI’s Fourth bi- monthly Policy: Salient points for Bank Exams
The Reserve Bank of India released India’s fourth bi- monthly Policy for the financial year 2017-18. The last monetary policy was released in the month of August. The Monetary policy is basically released by Monetary Policy Committee (MPC) which consist six members.
Key Points of Fourth Monetary Policy:
*Repo rate: the rate at which central banks lends to commercial banks for short term duration.
*SLR: It is the minimum proportion of deposits that banks have to maintain in form of Gold or government securities.
CRR*: It is the specified minimum percentage of cash deposits that commercial banks have to keep with RBI on a fortnightly basis.
*Basel III Accord: It is a framework for capital and liquidity standards for banking system worldwide. It establishes tougher capital standards through more restrictive capital definitions, higher risk-weighted assets, additional capital buffers, and higher requirements for minimum capital ratios. The Indian Basel III framework for bank risk-based capital requirements came into force in April 2013. It observed that several aspects of the Indian framework were more conservative than the Basel framework.
Do You Know?
The members of Monetary Policy Committee (MPC) are-