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Monetory Policy: This policy affects the growth of money supply in the economy by changing the cost of credit. It is controlled by Central Bank of India i.
It is of two types: I. Expansionary or Cheap money Policy: It increases money supply by making credit cheaply available. Contractionary Money Supply: It decreses money supply by making credit expensive. To push up growth this policy determines the amount of money and credit that will be available to various sector of the economy, whether it is High scale Sector or Small scale Sector.
While adopting this policy, it has also to keep in mind that money supply does not exceed the genuine demands of various sectors and lead to inflation. This resulted in poor growth performance. This means sufficient credit will be available for growing needs of different sectors of economy and at the same time, inflation will be controlled.
Promoting Priority Sector : To promote the sector that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises, RBI have put all these sectors under priority sector. RBI with the help of bank provides timely and adequately credit at affordable cost of weaker sections and low income groups.
Pratiyogita darpan june 2013 pdf in english
Pratiyogita Darpan PDF May 2019 PDF Download In Hindi & English
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