The Impact of Monetary Control Techniques Used on Banking Sector

Topics: Monetary policy, Inflation, Central bank Pages: 11 (3290 words) Published: September 23, 2012

|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 | | |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...

Bibliography: 2. K. C. Shekhar & Lekshmy Shekhar (2005). Banking Theory & Practices. New Delhi, 19th edition, Vikas Publishing House Pvt Ltd.
3. Gordon & Natarajan (2005). Financial Markets and Services. Mumbai, 2nd revised edition, Himalaya Publishing House.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Impact of Internal Control System in Banking Sector in Ghana Essay
  • Monetary Policies and Banking Regulations in Cameroon Essay
  • The Impact of Macroeconomic Instability on the Banking Sector Research Paper
  • Monetary Tools to Control the Market Essay
  • Monetary Policy and Its Impact on the Recession Essay
  • Impact of Computers in the Banking Sector Essay
  • Banking Sector Reform in India Essay
  • Credit Control in Banking Law Essay

Become a StudyMode Member

Sign Up - It's Free