Misc

The RBI formulates and implements monetary policy to maintain price stability while keeping in mind the objective of growth, and regulates the supply of money and credit in the economy.

ECB refers to loans raised by Indian entities from non-resident lenders in foreign currency; regulated by RBI under the Foreign Exchange Management Act (FEMA).

Fiscal deficit is the difference between the government's total expenditure and its total receipts excluding borrowings; it indicates the extent to which the government needs to borrow to meet its expenditure.

LAF is an RBI monetary policy tool that allows banks to borrow or lend short-term funds; its key instruments are the Repo Rate (injection) and Reverse Repo Rate (absorption).

NABARD (National Bank for Agriculture and Rural Development) serves as the apex development finance institution for agriculture and rural sectors, providing refinance support to banks and promoting rural credit delivery.

MSF is a rate at which scheduled banks can borrow overnight funds from RBI against their excess SLR securities; it is typically 25 basis points above the Repo Rate.

The Repo Rate is the rate at which RBI lends money to commercial banks against government securities, while the Reverse Repo Rate is the rate at which RBI borrows money from commercial banks, typically 25 basis points below the Repo Rate.

Bank Rate is the rate at which RBI lends to banks without any collateral for long-term purposes; it is also used as the penal rate for banks that do not meet SLR/CRR requirements.