RBI Policies

What are the reasons behind surplus liquidity in the system? To stimulate growth, various tools were used by RBI during […]

Context: The Indian government and the RBI are getting ready to launch a central bank digital currency (CBDC). Types of

Context: Inflation in many big countries. In India, WPI is in double digits while CPI is low. Inflation across world:

Context: India’s foreign exchange reserves have gone up by over $160 billion since the beginning of the last fiscal year

Context: RBI announced Retail Direct Scheme which allows general public to invest in G-Secs. RBI is working on digital rupee

Status of Fiscal Deficit in FY22: According to the finance ministry data, government is likely to achieve 6.8 per cent

Problems for Indian economy: (Make a diagram) Low output; Increase in Public debt; High Inflation; Low demand; and Increased forex reserves.

Background: RBI has not intervened on high inflation since the onset of the pandemic in order to support growth. It

Context: Rupee fell sharply by 105 paise. It is considered as one of the biggest single-session falls in 20 months.

Context: Budget 2022 has announced the introduction of India’s Central Bank Digital Currency (CBDC). Central Bank Digital Currency: Central bank digital