MONEY SUPPLY AND INFLATION

WHAT IS MONEY  Money is anything which performs the following functions  (i) Medium of Exchange (ii) A measure of value (iii) A store of value over time (iv) Standard for deferred payments 1. Medium of Exchange: Individual goods and services, and other physical assets, are ‘priced’ in terms of money and are exchanged using money. 2. A Measure of Value: Money is used to measure and

Read more

Update on lending to Priority Sector for Primary (Urban) Co-operative Banks (UCBs)

Update on lending to Priority Sector for Primary (Urban) Co-operative Banks (UCBs) Target for lending to total priority sector and weaker section will continue as 40 per cent and 10 per cent, respectively, of Adjusted Net Bank Credit (ANBC) or credit equivalent of off-balance sheet exposure, whichever is higher, as hitherto. Agriculture: Distinction between direct and indirect agriculture is dispensed

Read more

Investment limit for Foreign Portfolio Investors (FPI) in Debt

FPIs are permitted to invest in treasury bills issued by the Central Government. The requirement that investment in securities of any category (G-secs, SDLs or, in terms of this circular, corporate bonds) with residual maturity below one year shall not exceed 20% of total investment by an FPI in that category applies, on a continuous basis. At any point in

Read more