explain in detail rbi's measures of money supply
how do we have the licence for restriced money exchange from RBI
Reserve Bank of India.
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RBI
It means run(s) batted in. RBI also stands for Reserve Bank of India.
Reserve bank of India
who control money
MEASURES OF MONEY SUPPLY IN INDIAThe Reserve Bank of India defines the monetary aggregates as:Reserve Money (M0): Currency in circulation + Bankers' deposits with the RBI + 'Other' deposits with the RBI = Net RBI credit to the Government + RBI credit to the commercial sector + RBI's claims on banks + RBI's net foreign assets + Government's currency liabilities to the public - RBI's net non-monetary liabilities.M1: Currency with the public + Deposit money of the public (Demand deposits with the banking system + 'Other' deposits with the RBI).M2: M1 + Savings deposits with Post office savings banks.M3: M1+ Time deposits with the banking system = Net bank credit to the Government + Bank credit to the commercial sector + Net foreign exchange assets of the banking sector + Government's currency liabilities to the public - Net non-monetary liabilities of the banking sector (Other than Time Deposits).M4: M3 + All deposits with post office savings banks (excluding National Savings Certificates).
Apply to RBI?
control of supply and demand of the money.
unlimited is controlled mainly by amount of money RBI wants to be there in market. gold standard is gone. money is printed by taking in account of supply and inflation.
Some instruments of monetary policy used by the Reserve Bank of India are price stability, restriction of inventories, promotion of efficiency and reducing rigidity. By using this policy, the RBI is able to control the money supply of its country's economy.
Cash Reserve Ratio or CRR in India is the amount of money that every bank has to deposit with the RBI per customer. Every time a customer deposits cash to the bank, the bank has to correspondingly deposit a portion of that cash to the RBI. RBI decides this percentage of money that each bank has to deposit with it.
how do we have the licence for restriced money exchange from RBI
Reserve Bank of India.
State Bank of India (SBI) is the largest nationalized bank in India but it does not perform any role when it comes to Reserve Bank of India (RBI). The RBI is an independent entity that takes policy decisions with respect to Banking in India and SBI along with all other banks in India have to adhere to the guidelines set up by RBI.
rbi