🔹MP(monetary policy) --FLOW OF MONEY IS CONTROLLED BY RBI
🔹MPC--6 MEBBER ---3 GOI + 3 RBI
🔹CHAIRMAN OF MPC---GOVERNER OF RBI
🔵 MONETARY POLICY HAVING TWO TOOL
🔹1:-DIRECT TOOL 2:-INDIRECT TOOL
🔵 1:-DIRECT TOOL -- CRR, SLR
🔹CRR (CASH RESERVE RATIO) :- 1-CRR IS DEFINED UNDER SECTION 42(1) OF RBI ACT 1934
2:- MAINTAINED IN CASH FIRM
3:-CRR KEEP IN RBI
🔹SLR (STATUTORY LIQUIDITY RATIO ---1:- UNDER SECTION 24 OF BANKING REGULATION ACT 1949
2:-IT MAINTAINED IN CASH,GOLD,GOV SECURITIES
3:- JO BANK APNE PASS RKTI HAI
🔵 2:-INDIRECT TOOL --- RR,RRR,LAF,MSF,BANK RATE
🔹RR (REPO RATE) ---A COMMERCIAL BANK TAKES MONEY FROM RBI FOR 90 DAYS
🔹RRR (REVERSE REPO RATE----A COMMERCIAL BANK GIVES ITS SURPLUS MONEY TO RBI
🔹MSF (MARGINAL STANDING FACILITY)--- A COMMERCIAL BANK TAKES MONEY FROM RBI FOR A PERIOD UP 1 DAY, 24 HOUR
🔹BANK RATE --- A COMMERCIAL BANK TAKES MONEY FROM RBI FOR MORE THAN 90 DAYS
🔹LAF (LIQUIDITY ADJUST FACILITY) --- COMBINATION OF REPO RATE AND REVERSE REPO RATE
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