This paper is published in Volume 1, Issue 5, 2018
Area
Corporate Finance
Author
Shubham Lonkar
Org/Univ
Indore Institute of Law, Indore, Madhya Pradesh, India
Pub. Date
31 July, 2018
Paper ID
V1I5-1138
Publisher
Keywords
Monetary policy

Citationsacebook

IEEE
Shubham Lonkar. Research work on RBI and its credit control policy and instruments, International Journal of Advance Research, Ideas and Innovations in Technology, www.IJERnD.com.

APA
Shubham Lonkar (2018). Research work on RBI and its credit control policy and instruments. International Journal of Advance Research, Ideas and Innovations in Technology, 1(5) www.IJERnD.com.

MLA
Shubham Lonkar. "Research work on RBI and its credit control policy and instruments." International Journal of Advance Research, Ideas and Innovations in Technology 1.5 (2018). www.IJERnD.com.

Abstract

The RBI most important goal is to maintain monetary stability - moderate and stable inflation in India. The RBI uses monetary policy to maintain price stability and an adequate flow of credit. Rates which the Indian central bank uses for this are the bank rate, repo rate, reverse repo rate and the cash reserve ratio. The Reserve Bank of India (RBI) raised repo and reverse repo rates 13 times in the previous year. RBI also deregulated savings bank deposit rate with immediate effect. This step was taken to arrest rising inflation in Asia's third-largest economy. But this RBI's decision to hike short-term lending and borrowing rates could lead to higher interest rates and impact the growth momentum of the economy.
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