Match the following Reserve Bank of India (RBI) monetary policy mechanisms and liquidity tools in List I with their corresponding statutory or operational features in List II:
- Cash Reserve Ratio (CRR)Mandatory cash reserve maintained by scheduled commercial banks directly with the RBI, earning no interest.
- Statutory Liquidity Ratio (SLR)Reserve requirement maintained by banks in liquid assets like unencumbered government securities under Section 24 of the Banking Regulation Act, 1949.
- Standing Deposit Facility (SDF)Uncollateralized liquidity absorption mechanism operating at the floor of the Liquidity Adjustment Facility (LAF) corridor.
- Marginal Standing Facility (MSF)Overnight penal borrowing window allowing banks to borrow against excess SLR holdings at the ceiling rate of the LAF corridor.
Cevap
Cash Reserve Ratio (CRR) matches with the mandatory cash reserve earning no interest; Statutory Liquidity Ratio (SLR) matches with the reserve maintained in liquid assets under the Banking Regulation Act, 1949; Standing Deposit Facility (SDF) matches with the uncollateralized liquidity absorption mechanism at the LAF floor; Marginal Standing Facility (MSF) matches with the overnight penal borrowing window at the LAF ceiling.
Each instrument aligns with its exact regulatory authority and operational purpose: Cash Reserve Ratio is a non-interest-bearing cash reserve held directly with the RBI; Statutory Liquidity Ratio represents liquid assets (like G-Secs) held under the Banking Regulation Act; Standing Deposit Facility acts as the uncollateralized liquidity absorber at the corridor floor; and Marginal Standing Facility serves as the emergency penal borrowing window at the corridor ceiling.
Adım Adım Çözüm
Anahtar Kavram
RBI Monetary Policy Instruments and Liquidity Management Corridor