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to keep liquidity in financial markets

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How much money can RBI print in one year?

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.


How Reserve Bank of India control money market?

The Reserve Bank of India (RBI) controls the money market primarily through monetary policy tools such as the repo rate, reverse repo rate, and cash reserve ratio (CRR). By adjusting the repo rate, the RBI influences the cost of borrowing for banks, which in turn affects lending rates and liquidity in the economy. Additionally, the RBI conducts open market operations to buy or sell government securities, thereby managing the money supply. These measures help stabilize inflation and ensure sufficient liquidity in the financial system.


What is the role of rbi in banking?

government securities


Where do you cash in foreign money?

RBI


What is the role of RBI in forex?

The Reserve Bank of India (RBI) plays a crucial role in the foreign exchange (forex) market by regulating and managing the country's forex reserves, ensuring stability in the currency exchange rates. It formulates and implements policies related to foreign exchange under the Foreign Exchange Management Act (FEMA), 1999. Additionally, the RBI acts as the custodian of India's foreign exchange reserves, intervenes in the forex market to curb excessive volatility, and facilitates external trade and payments. Through these actions, the RBI aims to maintain the overall stability of the Indian economy.

Related Questions

How much money can RBI print in one year?

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.


Why the Indian money market called underdeveloped money market?

Because of the existence of Unorganized sector. This sector remains outside the purview of the RBI even today. It makes the money market an under developed one.


What is the role of RBI in the foreign exchange market?

Just link to this site and ull get ur answer http://www.slideshare.net/rajeevj/foreign-exchange-market-presentation


Money supply measures in India by rbi?

explain in detail rbi's measures of money supply


How do banks function?

Banks play a vital role to keep the flow of money in the economy in a controlled manner following the guidelines of RBI.


Who controls money in India with RBI?

who control money


Who carries out open market operation in India?

rbi


What is the role of rbi in banking?

government securities


Where do you cash in foreign money?

RBI


How Reserve Bank of India control money market?

The Reserve Bank of India (RBI) controls the money market primarily through monetary policy tools such as the repo rate, reverse repo rate, and cash reserve ratio (CRR). By adjusting the repo rate, the RBI influences the cost of borrowing for banks, which in turn affects lending rates and liquidity in the economy. Additionally, the RBI conducts open market operations to buy or sell government securities, thereby managing the money supply. These measures help stabilize inflation and ensure sufficient liquidity in the financial system.


What are the tools with RBI to control liquidity in market?

control the CLR rate


Why banks need to borrow money from RBI?

Banks may not have all the money they need for their day to day operations. In such cases where they have a deficit, they borrow money from RBI. For example, during festival seasons bank customers may withdraw more money than usual. So, at such times they may borrow extra money from RBI to meet their sudden withdrawal demands.