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WHAT IS RBI
OBJECTIVES
maintaining price stability
ensuring adequate flow of credit to productive sectors.
Monetary Authority:
Issuer of Currency
Banker and Debt Manager to Government
Banker to Banks
Regulator of the Banking System
Manager of Foreign Exchange
Developmental Role
Research, Data and Knowledge Sharing:
RBI APPROACH
They monitor and analyze the movement of a number of
indicators .
Interest rates,
inflation rate,
money supply,
credit,
exchange rate,
trade,
capital flows and
fiscal position, along with trends in output as we develop our
policy perspectives.
MAIN ACTIVITIES
MONETARY POLICY
MONETARY
POLICY
announced
twice in the year
first in April and
second
in
October.
Money supply(m3)
Inflation
Interest rate
IMPACT OF
MONETARY POLICY
MONEY
SUPPLY IN
THE
ECONOMY
INTEREST
RATE AND
SAVING
EXPORTERS
AND
IMPORTERS
INFLATION
JOBS AND
WAGES
24.4
18.34
16.23
4.11
FOOD
INFLATION
TOTAL
POPULATION
OF INDA
DEPENDENCY
CONTRIBU FOOD
ON AGRI.(OF
TION IN
INFLATIO
TOTAL POPULA) GDP(AGRI) N
110 CRORE
58.2%
14.2%
9.5%
2007-08
2008-09
2009-10
2010-11
EXTENT OF
MONEY
Expansion of money policy
EXTENT OF MONEY
The central measures the
extent of money and
credit available in the
economy using the
indices like
m0,m1,m2,m3.
TOOLS OF THE
MONETARY POLICY
OMO
CRR
REPO
SLR
BANK RATE
KEY RATE
NOV 2ND
2010
JAN 25TH
2011
MAR 17TH
2011
CRR
REPO RATE
6.25
6.50
6.75
REVERSE
REPO
5.25
5.50
5.75
BANK RATE
FISCAL POLICY
Fiscal policy is the policy of government concerned with
TAXATION
PUBLIC DEBT.
PUBLIC
EXPENDITURE.
DIRECT TAX
PERSONAL
INCOME TAX
CORPORATION
TAX
WEALTH TAX
INHERITANCE
INDIRECT TAX
EXCISE
DUTY
VAT
SALES
TAX
CUSTOMS
DUTY
PUBLIC EXPENDITURE
RISE IN PUBLIC EXPENDITURE WILL
BUDGET
BUDGET MEANS AN ESTIMATE OF REVENUE AND
EXPENDITURE.
IMPORTANCE
IN INDIA,THE TOTAL BUDGETARY EXPENDITURE OF
BOTH CENTRE AND STATE IS 50% OF GDP.
1. IT ACCELERATES ECONOMIC DEVELOPMENT
2. IMPROVES PRODUCTION IN PRIVATE SECTOR
3. IMPROVE INCOME DISTRIBUTION
4. PROMOTE EXPORT AND IMPORT DISTRIBUTION
BUDGET
UNION BUDGET
THANK
YOU