RBI ASSISTANT MAINS GENERAL KNOWLEDGE
RBI TERMS- PART 1
BY: GAZAL BHATNAGAR, VIDHYARTHI DARPAN
The Reserve Bank of India (RBI) is the nation’s pinnacle bank that was made up under the 1934 RBI Act to administer various banks, issue bank notes, and maintain stores with the ultimate goal of ensuring steadiness in India related to money.
Cash Reserve Ratio (CRR) is the minimum proportion of a bank’s clients ‘ total deposits that banks have to hold with the central bank as reserves.
C. MONETARY POLICY:
The central bank’s (RBI) policy of regulating the economic money supply.
India’s monetary policy committee (MPC) is an RBI body responsible for setting India’s benchmark interest rate.
Statutory liquidity proportion (SLR) alludes to the proportion of fluid advantages for net interest and time accountability.
Minor Standing Office (MSF) is a credit bureau that allows banks to obtain from RBI in a crisis when the interbank liquidity evaporates entirely.
The Liquid Adjustment Facility (LAF) is a mechanism that enables banks to borrow money via repurchase agreements that consist of repo operations and reverse repo.
Market Stabilization Scheme (MSS) is a fiscal strategy intercession by RBI to pull back overabundance liquidity by selling government protections in the economy.
Open Market Operations applies to the purchase and sale of government protections in the open market in order to raise or receive cash calculation in the financial system.
J. ZERO COUPON BOND:
It is a bond priced at an appropriate discount, as it does not have a coupon.
Repo reflects an interpretation of repurchase where a security dealer consents to repurchase it from a customer on a predefined date at a more significant expense.
L. MORAL SUASION:
Moral suasion alludes to a technique for demand, a strategy for guidance by the RBI to the business banks to accept certain measures according to the pattern of the economy.
A Certificate of Deposit (CD) is a promissory note issued by a bank with a maturity date, fixed loan fee and can be given in any category which limits holders from pulling back assets on request.
Selective credit control (SCC) is a device in RBI’s hands for confining bank finance to specific commodities.
Net Asset Value (NAV) is the value per portion of a mutual / trade fund that are collected once a day on the basis of the closing market’s cost of security.
National Stock Exchange Fifty is the detailed NSE list containing 51 stocks.
Exchange-Traded Fund (ETF) is a marketable securities tracker that tracks an index, commodity, stock, or asset collection.
The Relative Strength Index (RSI) is a statistical metric used in financial markets analysis.
Prime Lending Rate (PLR) is an Interest rate at which a bank lends its most loyal client, i.e., ‘ zero risk ‘ customer.
Dematerialization (DeMat) is the progression towards their electronic partners from physical stock testaments.