it includes the current bank rates

1. Recent Monetary Policy
Submitted to :- Submitted by :-
Mr. Rajinder Singh Lovepreet Boparai
Desh Bhagat University
B.com 2nd year
Roll no - 34

2. Contents
Monetary Policy
Objectives of monetary policy
Elements of monetary policy
Current Rates

3. Monetary Policy
Monetary policy is the process by which
the monetary authority of a country controls
the supply of money, often targeting an
inflation rate or interest rate to ensure price
stability and general trust in the currency.

4. Objectives of monetary policy
• i. To Regulate Money Supply in the Economy
• ii. To Attain Price Stability
• iii. To promote Economic Growth
• iv. To Promote saving and Investment
• v. To Control Business Cycles
• vi. To Promote Exports and Substitute Imports
• viii. To Ensure more Credit for Priority Sector
• ix. To Promote Employment
• x. To Develop Infrastructure
• xi. To Regulate and Expand Banking

5. Elements
• (Monetary Policy Statement for 2016-17 announced on
9th August 2016)
• Repo Rate
• 6.50% (has been unchanged since 5th April 2016)
• Reverse Repo Rate
• 6.00% (has been unchanged since 5th April 2016)
• Marginal Standing Facility (MSF) Rate
• 7.00% (has been unchanged since 5th April 2016)

6. Elements
• Bank Rate
• 7.00% (has been unchanged since 29th September 2015)
• Cash Reserve Rato (CRR)
• 4.00% (has been unchanged since 9th February 2013)
• Statutory Liquidity Ratio (SLR)
• 21.00% as on 9th July 2016. As per RBI’s SLR reduction
timetable, it would further be lowered to 20.75% from
1st October 2016. The RBI has said that post last round of
reduction; SLR would be 20.50% by 1st January 2017

7. Current Rates
Repo Rate 6.50%
Reverse Repo Rate 6.00%
Bank Rate 7.00%
Marginal Standing Facility (MSF) 7.00%
Cash Reserve Ratio (CRR) 4.00%
Statutory Liquidity Ratio (SLR) 21.00%