BANKING AFFAIRS

Detailed explanation-1: -The stance of RBI monetary policy is to control inflation with adequate liquidity for growth, improve credit quality of the commercial banks and strengthen credit delivery mechanism. RBI is the apex bank.

Detailed explanation-2: -On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (February 8, 2023) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.50 per cent with immediate effect.

Detailed explanation-3: -Monetary Policy Stances are namely Dovish, Hawkish, Accommodative & Neutral, so that now for the upcoming RBI’s Monetary Policy Statements, you could well comprehend the meaning of these Monetary Policy Stances.

Detailed explanation-4: -Cash Reserve Ratio (CRR) is one of the main components of the RBI’s monetary policy, which is used to regulate the money supply, level of inflation, and liquidity in the country. The higher the CRR, the lower is the liquidity with the banks and vice-versa.

Detailed explanation-5: -Monetary Policy Committee of the Reserve Bank of India meets every two months to take key decisions on the Monetary Policy of the Country. Monetary Policy Stances are namely Dovish, Hawkish, and Accommodative & Neutral.