Glossary Terms

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Nov'17

Interest rate channel of monetary policy

The interest rate channel of monetary policy refers to the way in which RBI’s repo rate change influences inflation and …

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Nov'17

Monetary Transmission Mechanism

Monetary Transmission Mechanism or monetary transmission refers to the process by which a central bank’s monetary policy signals (like repo …

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Nov'17

Payment and Settlement System

Payment and settlement system means the financial infrastructure that carries out payment and settlement between banks and other institutions. Since …

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Nov'17

Ways and Means Advances (WMA)

The WMA (introduced in 1997) scheme is temporary loan facility to the central and state governments by the RBI. It …

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Nov'17

Banker to the government

Banker to the government function is done by central banks like the RBI. As a banker to the government central …

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Nov'17

Lender of Last Resort

Lender of last resort’ (LoLR) is an exclusive function of central banks including the RBI, where it lends money to …

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Nov'17

Banker’s Bank

In any economy, the banker to bank function is done by the central banks including the RBI. As a banker’s …

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Nov'17

Financial Supervision

This is the function of supervising financial institutions especially, commercial banks by making onsite/offsite supervision using certain criteria. RBI is …

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Nov'17

Financial Regulation

Financial regulation means putting laws for the financial institutions like banks to follow. RBI, SEBI, PFRDA and IRDA are the …

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Nov'17

Monetary policy schedule

Monetary policy in India is implemented on a scheduled manner, starting with the annual policy statement by the Governor in …

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