CENTRAL BANK

GROUP 10:
DIPIKA DIP
JUHI
SUPRIYA
ROHIT MALUR
MALABIKA DATTARAY
 INTRODUCTION
A government monetary authority that issues
currency , regulates the supply of credit , holds the
reserves of other banks and sells new issues of
securities for the government
 FUNCTIONS OF THE CENTRAL BANK

Bank of issue

Banker to the government

Bankers bank

Credit controller

Custodian of foreign exchange

 TECHNIQUES OF CREDIT CONTROL
Quantitative Credit Control
 Cash Reserve Ratio(CRR)
 Bank Rate
 Repo Rate
 Reverse Repo Rate
 Statutory Liquidity Requirement (SLR)
 Open Market Operation(OMO)

• Selective Credit Control

 Credit Monitoring Arrangement (CMA)
 TECHNIQUES OF CREDIT CONTROL CONTD…
 Cash Reserve Ratio(CRR)
Central bank regulation that sets the minimum reserves each
commercial bank must hold of customer deposits and notes

 Bank Rate
Bank rate also called as discount rate, is the rate of interest
which a central bank charges on the charges on loans and
advances that it extends to commercial banks and other financial
intermediaries
 TECHNIQUES OF CREDIT CONTROL CONTD…
Repo Rate
Rate at which commercial bank borrows currency from the
central bank

Reverse Repo Rate

Bank rate also called as discount rate, is the rate of interest
which a central bank charges on the charges on loans and
advances that it extends to commercial banks and other financial
intermediaries
 TECHNIQUES OF CREDIT CONTROL CONTD…
Repo Rate
Rate at which commercial bank borrows currency from the
central bank

Reverse Repo Rate

Bank rate also called as discount rate, is the rate of interest
which a central bank charges on the charges on loans and
advances that it extends to commercial banks and other financial
intermediaries
 FISCAL POLICY
Government spending policies that influences
macroeconomic condition

Government adjust its level of spending in order to

monitor and influence a nations economy
CENTRAL BANK ROLE
IN
INFLATION


THANK YOU