|Title of the Paper (Finance) |The Impact of Monetary Control Techniques used on Banking Sector | | | | |Name of Author |Mr. Arvind R. Gajakosh | | | City College | | |Department of Management Studies. | |Organization |Affiliated to Bangalore University, Bangalore | | |Post Title: Assistant Professor (BE. MBA. NET) | |Telephone No. |09342661990/08026649277 | |Fax No. |08026649278 | |Email |firstname.lastname@example.org | |Postal Address |Mr. Arvind R. Gajakosh | | |Assistant Professor | | |City College-MBA Department | | |#22/2, 33rd Cross, 2nd Main, Jayanagar 7th Block, | | |Bangalore – 560070 | |Acknowledgement |City College, Department of Management Studies, Bangalore-560070. |
The Impact of Monetary Control Techniques used on Banking Sector
The objectives of monetary policy have undergone a change in emphasis over the years. The objectives of monetary policy in India were: to accelerate economic development in an environment of reasonable price stability; to develop appropriate institutional set up to aid this process. By influencing the cost, volume, and direction of credit, monetary policy has been encouraging sectoral and overall development and supporting programme aimed at social justice. The containment of inflationary pressures without jeopardizing the growth potential has been the main objective of monetary policy, but over the years, the former has assumed an overriding importance. Since the mid of the 1980s, monetary policy has an explicitly added concern, namely to promote efficiency in the operations of the financial system and to effect appropriate structural changes in it. The monetary policy is now geared towards reducing the rigidities, introducing flexibility, encouraging diversification, promoting more competitive environment and imparting greater discipline and prudence in the operations of the financial system. To achieve the objectives of monetary policy we have to implement different techniques of monetary control like Cash Reserve ratio, Statutory Liquidity Ratio etc. This paper focuses on the techniques used for monetary control in banking sector. Conceptual research type will be used for this study by referring the reliable information from suitable sources. Outcome of this paper is related to know the impact of techniques used for monetary control in banking sector.
Keywords: Monetary Policy, CRR, SLR, Bank Rate, Open Market...