Monetary Policy

Use of the techniques of monetary control to achieve the broad objectives of Maintaining price stability and Ensuring adequate flow of credit to productive sectors so as to assist growth

Techniques of monetary control

1)   Open market operations (OMO)

2)   Bank Rate

3)   Discretionary control of refinance and re discounting

4)   Direct regulation of interest rates on CP, deposits and loans

5)   Cash reserve ratio (CRR)

6)   Statutory liquidity ratio (SLR)

7)   Direct credit allocation and credit rationing

8)   Selective credit controls

9)   Credit authorization scheme

10)   Fixation of inventory and credit norms

11)    Credit Planning

12)   Moral Suasion

13)    Liquidity Adjustment facility (LAF)