This presentation explains various monetary instruments being adopted by the Reserve Bank of India. It also shows their impact on stock market. It also show the statistic trend of inflation, repo rate, reverse repo rate, etc in India.
it is a full information for the students according to thrir examinations point of view about monetary policy and objectives,nature, instruments of monitary policy
What is RBI, Structure of RBI, Function of RBI(Traditional/Promotional/Supervisory), Economic Policies, Monetary Policies, CRR, SLR, RRR, LAF, MSF, OMOS
This presentation explains various monetary instruments being adopted by the Reserve Bank of India. It also shows their impact on stock market. It also show the statistic trend of inflation, repo rate, reverse repo rate, etc in India.
it is a full information for the students according to thrir examinations point of view about monetary policy and objectives,nature, instruments of monitary policy
What is RBI, Structure of RBI, Function of RBI(Traditional/Promotional/Supervisory), Economic Policies, Monetary Policies, CRR, SLR, RRR, LAF, MSF, OMOS
Tehnicka dokumentacija i studija slučaja o vidu internet prevare: Phishing. Predmet testiranja su studenti informatike. 20 poslatih email zahteva za promenu podataka, pročitajte rezultat. Prica pored tehničke pripreme jednog prostog sistema za phishing ispituje svest i obazrivost mladih it stručnjaka, ali takodje objašnjava i koje su mere zaštite od ove sve češće pojave.
I had the chance to speak in front of the Federation of Houston Professional Women on my marketing journey from Myspace to Snapchat. We explored popular social media platforms and the importance of creating content and video marketing.
يطوف هذا الكتاب بالقارئ الكريم في أسرار اسراء نبينا صلى الله عليه وسلم ، حيث يتناول اشارات السالكين في معراج النبي، وحكمة الاسراء للأنبياء، وأسرار العروج للعالم الأعلى ، وعطاء الصادقين ونصيبهم من هذه الرحلة المباركة، ثم يعرج على قدر سيدنا رسول الله وكمالاته، والدروس المستفادة لكل مؤمن من رحلة الاسراء ... ويختم
"الكمالات المحمدية"،هو الكتاب الذى يوضح بجلاءٍ مُوَثَّق ومدقَّق .. مظاهر عظمة النبى ? وبلوغه الغاية العظمى لكلِّ الصفات العليا كالحلم والصفح والعفو والايثار وغيرها، وكذلك يبين المزايا الخاصة التى انفرد بها الحبيب المصطفى صل الله عليه وسلم ، كما يناقش أيضاً بعض القضايا الخاصة بحضرته والتى أثير لغطٌ كبيرٌ بشأنها، ويبيِّن أحسن المحامل التى ينبغى على المؤمن أن يفسِّر بها تلك القضايا حرصاً على تنزيه مقام النبوة، وأخذاً بالعصمة الإلهية التى شمل الله بها نبيَّه وسائر أنيائه ورسله.
الذي دعاني لكتابة هذا الكتاب، أنه لم يوجد في الوجود كلِّه شخصية تعرضت للانتقادات
والتحريفات كشخصية سيدنا رسول الله صل الله عليه وسلم ..!! هذا! ... مع أنه صل الله عليه وسلم الشخصية الوحيدة التي سجَّل عنها المؤرخون أدق تفاصيل حياته؛ فكلُّ حركاته، وسكناته؛ ... سجَّلوها تسجيلاً دقيقاً بمعايير لا يستطيع الإنسان الآن أن يجد أدقَّ منها في المعايير العلمية والموازين المادية، التي توزن بها العلوم والنظريات والأعراف. لكن الأعداء بثُّوا في الأمة السُّمَّ في الدسم، وحاولوا - كما يحاولون دائمًاً - أن يشككونا تارة في شخصيته، وآونة في عصمته، وأحياناً في دقَّة ما ورد من سنته. والمؤمن لا بد أن يكون حريصاً على كلِّ ذلك، ففي القرآن آيات وضَّحت ما ينبغي أن نَعْلَمَهُ عن المصطفى صل الله عليه وسلم من جميع الجهات. فأمَّا نُطْقُه، فقد قال فيه ربُّه صل الله عليه وسلم: "وما ينطق عن الهوى * إن هو إلا وحي يوحى" { 3،4النجم } فإذا جاء حديثٌ لم نستوعبه أو لم نفهمه،
، فنعلم علم اليقين أنه ليس كل ما قيل جاء أوانه، ولا كل ما جاء أوانه جاء زمانه، وهو نبيُّ الختام وقد أتى بالكلام الذي يحتاج إليه الأنام إلى يوم الزحام، فالذي نحتاجه والذين من قبلنا والذين من بعدنا أتى به رسول الله صل الله عليه وسلم.
فالذي لم نفهمه لأنه ليس لنا لكنَّه للزمن الذي سيأتي، وكم من أحاديث نبويَّة وقف عندها العلماء السابقون وبيَّنها العلم في هذا الزمان وكانت معجزة لسيد ولد عدنان صل الله عليه وسلم.
فالحديث العلمي - الذي لم يصل العلم إلى كشفه - لا نقول به ونحاول أن نعلله أو نوجهه، بل نقول كما قال الله عزوجل لنا: آمنا به، وآمنا برسوله، وآمنا بكتابه، وآمنا بكل ما قاله نبيُّنا صل الله عليه وسلم، ... كل هذا :
(( كُلٌّ مِنْ عِنْدِ رَبِّنَا-)) { 7آل عمران }.
بسم الله الرحمن الرحيم
إخوانى الكرام!
إن أجلّ رسالة يؤديها المرء في الحياة ، وأعظم عمل يقوم به ليرضي الله ، ويكتسب المنزلة الكريمة عند خلق الله ؛ هو دعوة الخلق إلى الله بالحكمة والموعظة الحسنة، والقدوة الطيبة، والخلق الكريم، وتلكم هي أعظم رسالة يقوم بها الصالحون نيابة عن الأنبياء والمرسلين؛ سر قول النبى صلى الله عليه و سلم :
{ العلماءُ ورثةُ الأنبياء}( صحيح ابن حبان عن أبي الدرداء
وبيّن صلى الله عليه و سلم حقيقة هذا الإرث فقال:
{ نحنُ معاشرُ الأنبياء لا نوَرِّثُ درهماً ولا ديناراً ، وإنما نوَرِّثُ علماً ونورا }( سنن أبي داود عن أبي الدرداء.).
والقائمون بهذا الأمر ، والحاملون لواء هذا العمل الجليل في كل زمان ومكان ، يقول فيهم رسول الله صلى الله عليه و سلم :
{ قال الله إن أوليائي من عبادي ، وأحبائي من خلقي ؛ الذين يُذْكَرُون بذكري ، وأُذْكَرُ بذكرهم}(رواه أبونعيم عن عمرو بن الجموح).وقد نعتهم صلى الله عليه و سلم، لأنهم أولياء الله وذلك حين قال :
{ألا أخبركم بخياركم ؟ قالوا : بلى يارسول الله ! ، قال : خياركم الذين إذا رُءوا ؛ ذُكِرَ الله}
( أسماء بنت يزيد فى سنن إبن ماجه)
، وذكر صلى الله عليه و سلم حال هؤلاء القوم ، وموقفهم من الفتن التي تتعرض لها الأمة ، وأنهم المحفوظون من الفتن الموقون ؛ فقال:
{ إن لله عز و جل ضنائنَ من عباده يغذوهم في رحمته ، ويحييهم في عافيته ، وإذا توفَّاهم توفَّاهم إلى جنته ، أولئك الذين تمر عليهم الفتن كقطع الليل المظلم ، وهم منها في عافية }(عن ابن عمر، كتاب الأولياء لأبن أبى الدنيا).
وقد وصف ذو النون المصري رضى الله عنه هؤلاء القوم ومنزلتهم عند الله ومهامهم التي يقومون بها لخلق الله؛ طلباً لمرضاة الله؛ وذلك إجابة لسؤال أحد مريديه حيث يقول: قلت لذى النون المصري رحمه الله :صف لي الأبدال ؟ فقال :
{ هم قوم ذكروا الله عز و جل بقلوبهم؛ تعظيماً لربهم لمعرفتهم بجلاله فهم حجج الله على خلقه .
ألبسهم النور الساطع من محبته ، ورفع لهم أعلام الهداية إلى مواصلته ، وأقامهم مقام الأبطال لإرادته ، وأفرغ لهم الصبر عن مخالفته ، وطهَّر أبدانهم بمراقبته ، وطيَّبهم بطيب أهل مجاملته، وكساهم حللا من نسج مودته ، ووضع على رؤسهم تيجان مسرته ،ثم أودع القلوب من ذخائر الغيوب ؛ فهي معـــلقة بمواصلته ، فهمومهم إليه ثائرة ، وأعينهم إليه بالغيب ناظرة.
قال لهم ربهم: فمن عاداكم عاديته ، ومن والاكم واليته ، ومن آذاكم أهلكته ، ومن أحسن إليكم جازيته ، ومن هجركم قليته . }.
وإلى جانب الدعوة إلى الله ، فللصالحين رسالة اجتماعية عظيمة ، يقوم أساسها على : نشر المحبة والمودة بين الناس ، واقتلاع جذور الأحقاد والشحن
Monetary Policy Definition
Fiscal Policy Definition
Difference between them
Inflation
Bank reserve ratio
Open market operation
Repo & Reserve repo rates
Cash reserve ratio
Statutory liquid ratio
Factors affecting
Impact
Limitation
includes objectives of monetary policy and its importance and discussed different monetary instruments like bank rate, cash reserve ratio, statutary liquidity ratio, rationing of credit , moral suasion, repo rate, marginal requirement
.Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
OBJECTIVES OF MONETARY POLICY
Full Employment
• Price Stability
• Economic Growth
• Balance of Payments
• Exchange Rate Stability
• Neutrality of Money
• Equal Income Distribution
MONETRY POLICY PPT IN THIS PPT EVERYTHING IS EXPLAIN ABOUT THE MONETRY POLICY TOPIC WISE EASILY LEARN AND EXPLAIND THE DATA IS TAKEN BY RESERVE BANK SITE OR WORLD BANK WEBSITE. YOU CAN EASILY UNDERSTAND HOW RBI WORKS .
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
The Parable of the Pipeline a book every new businessman or business student ...
Monetary&fiscalpolicy
1. Monetary Magnitudes
• M1 = Currency with public+
Demand deposits with banks+
Other Deposits with RBI
• M2 = M1+ Post Office Deposits
• M3 = M1+ Time Deposits with Banks
• M4 = M3+ Total Post Office Deposits
2. What is Monetary Policy?
• The term monetary policy refers to actions
taken by central banks to affect monetary
magnitudes or other financial conditions.
• Monetary Policy operates on monetary
magnitudes or variables such as money
supply, interest rates and availability of credit.
• Monetary Policy ultimately operates through
its influence on expenditure flows in the
economy.
• In other words affects liquidity and by
affecting liquidity, and thus credit, it affects
total demand in the economy.
3. Aims of Monetary policy
• MP is a part of general economic policy of the govt.
• Thus MP contributes to the achievement of the goals
of economic policy.
5. Central Bank Objectives
• Advanced Economies
European Central Bank-Price Stability
Japan-Price Stability & financial Stability
UK-Inflation
USA –Max employment,Stable prices.
6. Price Stability: The Dominant
Objective
• Price stability does not mean complete year-to-year
price stability which is difficult to attain.
• Price stability refers to the long run average stability
of prices.
• Price stability involves avoidance of both inflationary
and deflationary pressures.
• Price Stability contributes improvements in the
standard of living of people.
• It promotes saving in the economy while discouraging
unproductive investment
• It contributes to the overall financial stability of the
economy
7. Instruments of Monetary Policy
I. Quantitative or General Controls
• Bank Rate Policy
• Variable Reserve Ratio
• Open Market Operations (OMOs)
II. Qualitative instruments or Selective Controls
8. Bank Rate Policy
• Bank rate is the minimum rate at which the
central bank of a country provides loans to the
commercial banks.
• It is also known as rediscount rate because
central banks earlier used to provide finance to
commercial banks by rediscounting bills of
exchange.
• Changes in the bank rate affect the credit
creation by banks by altering the cost of credit.
9. Bank Rate &Supply of money
• Bank rate is an important component of the
supply of money in the economy.
• When bank rate increasing the cost of
borrowing is high and hence results in the
reduction of money supply in the economy.
• During the periods of recession ,growth and
depression bank rate plays a very important
role to increase investment and aggregate
demand in the economy .
10. Limitations
• Responsiveness of businessmen to changes in
the lending rate of interest.
For changes in bank rate to cause changes in all
the other interest rate in the market a well
organised money market is needed.
The bank rate can check a boom and inflation
but the role in recovery is limited.
11. Variable Reserve Ratios
• Banks are required to maintain a certain
percentage of their total demand and time
deposits in the form of reserves or balances with
the RBI
• It is called Cash Reserve Ratio or CRR
• SLR –Statutory Liquidity Ratio
• Since reserves are high-powered money or base
money, by varying CRR, RBI can reduce or add to
the bank’s required reserves and thus affect
bank’s ability to lend.
• Present CRR Rate :4.00%
12. • Statutory Liquidity Ratio (SLR)
• In terms of Section 24 (2-A) of the B.R. Act, 1949 all
Scheduled Commercial Banks, in addition to
• the average daily balance which they are required to
maintain under Section 42 of the RBI Act,1934, are
required to maintain in India
• a) in cash, or
• b) in gold valued at a price not exceeding the current
market price
• c) in unencumbered approved securities valued at a
price as specified by the RBI from time to time
13. • At present, all Scheduled Commercial Banks
are required to maintain a uniform SLR of 25
per cent of the total of their demand and time
liabilities in India as on the last Friday of the
second preceding fortnight which is stipulated
under section 24 of the B.R. Act, 1949.
14. • an amount of which shall not, at the close of
the business on any day, be less than 25 per
cent or
• such other percentage not exceeding 40 per
cent as the RBI may from time to time, by
notification
• in gazette of India, specify, of the total of its
demand and time liabilities in India as on the
last
• Friday of the second preceding fortnight,
15. OPEN MARKET OPERATIONS
• It is another important instrument of credit
control.
• OMO means the purchase and sale of securities
by the central bank of the country.
• When central bank sells securities in the open
market it receives payment in the form of
cheque on one of the commercial banks.
• If the purchaser is bank the cheque is drawn
against the purchasing bank.
16. USE OF OMO
• This method is adopted to make bank rate
policy effective.
• EX: If member bank do not raise lending rates
due to the availability of surplus funds central
bank can withdraw surplus funds by sale of
securities and compels the members banks to
raise the interest rate.
• Note: Once the banks purchase securities surplus funds will be
reduced and banks borrow from central bank and rate of
interest increases.
17. Limitations of OMO
• The market for securities in short and long
term should be active as in the case of USA
and UK.
• In India OMO as an instrument did nor play a
significant role .
• General public do not buy more of
government securities.
18. • Qualitative instruments or Selective Controls
• It was introduced to check the speculation
activities in the market and control the flow of
credit selectively.
• A method through which credit may be extended
to certain areas and contracted to certain other
areas .
• This method is very useful during the periods of
business cycles .
19. • Monetary policy is used as an important technique to
combat the inflationary and deflationary tendencies in
the economy.
• To overcome the ill effects of business cycles
monetary policy is used as an important tool in the
economy .
• Monetary policy is one of the tools that a national
Government uses to influence its economy. Using its
monetary authority to control the supply and
availability of money, a government attempts to
influence the overall level of economic activity in line
with its political objectives
20. • Every bank is required to maintain at the close of
business every day, a minimum proportion of their Net
Demand and Time Liabilities as liquid assets in the
form of cash, gold and un-encumbered approved
securities. The ratio of liquid assets to demand and
time liabilities is known as Statutory Liquidity Ratio
(SLR). Present SLR is 25%(18.12.2010). RBI is
empowered to increase this ratio up to 40%. An
increase in SLR also restrict the bank’s leverage
position to pump more money into the economy.
21. •
Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to
the banks. When the repo rate increases borrowing from RBI becomes more
expensive. Therefore, we can say that in case, RBI wants to make it more
expensive for the banks to borrow money, it increases the repo rate; similarly,
if it wants to make it cheaper for banks to borrow money, it reduces the repo
rate. Present Repo Rate(7.50)23.3.13
•
Reverse Repo rate is the rate at which banks park their short-term excess
liquidity with the RBI. The RBI uses this tool when it feels there is too much
money floating in the banking system. An increase in the reverse repo rate
means that the RBI will borrow money from the banks at a higher rate of
interest. As a result, banks would prefer to keep their money with the RBI.
Present RRR(6.50) 23.3.13
•
Thus, we can conclude that Repo Rate signifies the rate at which liquidity is
injected in the banking system by RBI, whereas Reverse repo rate signifies the
rate at which the central bank absorbs liquidity from the banks
22. Meaning of Fiscal Policy
The word fisc means ‘state treasury’ and
fiscal policy refers to policy concerning the
use of ‘state treasury’ or the govt. finances
to achieve the macroeconomic goals.
It refers to the Revenue and Expenditure policy
of the Govt. which is generally used to cure
recession and maintain economic stability in
the country.
23. • Fiscal Policy And Macroeconomic Goals
• Economic Growth: By creating conditions for increase in
savings & investment.
• •Employment: By encouraging the use of labourabsorbing technology
• •Stabilization: fight with depressionary trends and
booming (overheating) indications in the economy
• •Economic Equality: By reducing the income and wealth
gaps between the rich and poor.
• Balanced Regional Development
• •Price stability: employed to contain inflationary and
deflationary tendencies in the economy.
24. Instruments of Fiscal Policy
Budgetary surplus and deficit
Government Expenditure
Taxation –Direct and Indirect
Public debt
Deficit Financing
25. Components of Budget
• Revenue Receipts
• Capital Receipts
• Revenue Expenditure
• Capital Expenditure
26. RUPEE COMES FROM
•
•
•
•
•
•
•
•
•
Where The Rupee Comes From
service & other taxes 7%
excise 17%
customs 12%
income tax 13%
corporation tax 21%
borrowings 19%
non-debt capital reciepts 1%
Non Tax revenue 10%
27. • Where the rupee goes to
state's share of taxes & duties 18%
• non plan assistance to states 5%
• planned state assistance 7%
• central plan 20%
• interest 20%
• defence 12%
• subsidies 7%
• Other Plan expenditure 11%
28. GOVERNMENT (Public)EXPENDITURE
An important instrument of fiscal policy
State has to fulfill certain social obligations like
providing free public health,education,housing
facilities.
The responsibility of building the infrastructure
and large capital goods industries,
spending on agricultural sector are the major
reason for the increase in public expenditure.
29. TAXATION
• An important source of public revenue
• Direct Tax - Includes taxes on personal income,
corporate income tax&taxes on property and
waelth.
• Indirect Tax – Includes sales tax, excise duty &
customs duty(Import &export duties)
• Developing countries depend on indirect tax
30. Public debt
• Important source of public revenue & a common
practice in all the countries.
• They help in the development process like building
infrastructure facilities and for welfare activities
funding .
• Government can raise public debt in the form of
voluntary loan or in the form of compulsory loan.
• Example for Compulsory loan –Issue of bonds,
Provident fund etc
Voluntary loan – Example- By issuing bills and
securities in the market
31. Deficit Financing
• The fiscal policies have an impact on the
goods market and the monetary policies have
an impact on the asset markets and since the
two markets are connected to each other via
the two macrovariables — output and interest
rates, the policies interact while influencing
the output or the interest rates.
32. • Deficit financing is an approach to
money management that involves spending
more money than is collected during the same
period. Sometimes referred to as a budget
deficit, this strategy is employed by
corporations and small businesses,
governments at just about every level, and
even household budgets. When used properly,
deficit financing helps to launch a chain of
events that ultimately enhances the financial
condition rather than simply creating debt that
may or may not be repaid.