Liquidity Adjustment Facility

 It is an important innovation in the Indian Money Market

Related concepts

Autonomous liquidity .AL comprises

Central Bank Balance Sheet flows that stem from regular Central Banking functions has currency Authority and Banker to Government Banks.

Discretionary Liquidity –Sum of Central Bank balance sheet flows that arise out of its money market operations.

Discretionary Liquidity represents a change in the total liquidity in the system which occurs due to monetary policy action