MONETARY

MANAGEMENT
The Bank uses various policy instruments,

including open market operations, discounts

and temporary accommodations, required
reserve ratios, re-deposits of financial
institutions
etc.,
to
regulate
financial
conditions and to achieve monetary policy
objectives.

The Reserve Bank of

India (RBI) adopted the
new
Consumer
Price
Index (combined) as the
measure of the nominal
anchor (headline CPI) for
policy
communication.
Policy rates were kept
unchanged during the
year till January 2015. In
view of continuing easing
of inflationary pressures,
on 15 January 2015 the
RBI reduced the policy
repo rate under the
liquidity
adjustment
facility (LAF) from 8.0 per
cent to 7.75 per cent.

The increase in the Net Foreign Exchange Assets (NFA) of the

RBI was mostly offset by the decrease in its Net Domestic

Assets (NDA), reflecting a lower net liquidity injection by the
RBI in the absence of strong demand for liquidity. The trends
in currency in circulation reflected weaker economic activity.

BANK CREDIT
The amount of credit available to a company

or individual from the banking system. It is the

aggregate of the amount of funds financial
institutions are willing to provide to an
individual or organization.

The growth of aggregate deposits of Scheduled Commercial Banks

(SCB) decelerated during 2014-15 till December, mainly due to

base effect, i.e. high accretion to NRI deposits, last year during
September-November and due to lower deposit mobilization during
this year. The growth in non-food credit also decelerated.

FINANCIAL INCLUSION
Financial inclusion is an important priority of the

government. The objective is to ensure the excluded

sections, i.e. weaker sections and low income
groups, access to various financial services such as
a basic savings bank account, need-based credit,
remittance facility, insurance and pension.
To achieve the objective of financial inclusion by
extending financial services to the large hitherto
unserved population of the country and to unlock its
growth potential, the Pradhan Mantri JanDhanYojana (PMJDY) was launched on 28 August
2014.

THANK
YOU!!