Measures of Monetary Policy: Ramification Curtail

Monetary Policy of India
Monetary policy is the process by which monetary authority of a country i.e. RBI controls the supply of money in the economy
by its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central
monetary authority is the Reserve Bank of India (RBI) is so designed as to maintain the price stability in the economy.
MEASURES OF MONETARY POLICY:
Quantitative measures to control amount of credit.rampification ramification curtail
Qualitative measures to control the allocation to different sections of economy.
TOOLS OF QUANTITATIVE MEASURES :
BANK RATE: The bank rate also known as the discount rate, is the rate of interest charged by the RBI for providing
funds or loans to the Banking system in india. It also signals the medium-term stance of monetary policy.
OPEN MARKET OPERTIONS(OMO): The buying and selling of government securities in the open market in order
to expand or contract the amount of money in the banking system. Purchases inject money into the banking system
and stimulate growth while sales of securities do the opposite.
LIQUIDITY ADJUCTMENT FACILITY(LAF): Liquidity Adjustment Facility is the primary instrument of Reserve Bank
of India for modulating liquidity and transmitting interest rate signals to the market. Under the scheme, repo auctions
(for absorption of liquidity) and reverse repo auctions (for injection of liquidity) are conducted on a daily basis (except
Saturdays). It is same-day transactions, with interest rates decided on a cut-off basis and derived from auctions on
uniform price basis.
REPO/REVERSE REPO RATE: These rates under the Liquidity Adjustment Facility (LAF) determine the corridor for
short-term money market interest rates. In turn, this is expected to trigger movement in other segments of the
financial market and the real economy.
MARKET STABLISATION SCHEME (MSS): This instrument for monetary management was introduced in 2004.
Liquidity of a more enduring nature arising from large capital flows is absorbed through sale of short-dated
government securities and treasury bills. The mobilised cash is held in a separate government account with the
Reserve Bank.
TOOLS OF QUALITATIVE MEASURES:
CREDIT CEILING: In this operation RBI issues prior information or direction that loans to the commercial banks will
be given up to a certain limit. In this case commercial bank will be tight in advancing loans to the public. They will
allocate loans to limited sectors. Few example of ceiling are agriculture sector advances, priority sector lending.
MORAL SUASION: Moral Suasions are suggestion and guidelines by the RBI to the commercial banks to take so
and so action and measures in so and so trend of the economy. RBI may request commercial banks not to give loans
for unproductive purpose which does not add to economic growth but increases inflation in the economy.
CREDIT AUTHORIZATION SCHEME: Credit Authorization Scheme was introduced in November, 1965 when P C
Bhattacharya was the chairman of RBI. Under this instrument of credit regulation RBI as per the guideline authorizes
the banks to advance loans to desired sectors
Read more: http://www.bankersadda.com/2015/01/monetary-policy-of-india.html#ixzz3OJqclLVd
Marketing Questions For The Interview

1. What is Marketing?
Ans: Marketing is the process of determining consumer demand for a product or service ,
motivating
its sale and distributing it into ultimate consumption at a profit.
2. What are the differences between Selling and Marketing ?
2.
3.
Selling
It is an operational activity
Marketing
Marketing is a concept which involves
identification of customer needs and
promoting the product to get it sold. Thus,
selling is the part of marking
It is product oriented i.e. . it deals It is consumer oriented i.e. It deals with
with sales forecast and sales volume
consumer taste and preferances.
Selling
encashes
profitable It convertss customer needs into saleable
opportunity
opportunity
3. What is marketing management?

Ans : It is the process of planning and executing the conception , pricing , promotion and distribution of goods , service , and
ideas to create exchanges with target groups that satisfy customer and organizational objectives.
4. What are the key functional aspects of Marketing Management ?
Ans :
1. Analysis : This involves understanding the customer needs and identifying the target market.
2. Planning: This involves designing the marketing programmes and tactics to promote products in targeted market.
3. Implementation: Implementing the plan.
4. Control : This involves the use of both qualitative and quantitative techniques including budgetary control , control of
marketing mix etc to evaluate the progress of implemented plan.
5. What is a product ?
Ans : Product is anything that can be offered to a market for attention , acquisition, use or consumption (Kotler)
6. What is service ?
Ans: Kotler and Bloom defined service as any act or performance that one party can offer to another that is essentially
intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product
7. What are the differences between product and service ?
Ans :
Product
Tangible
Homogeneous
It can be kept
in stock
Transfer of
ownership
It is a thing
Service
Intangible
Heterogeneous
Production and consumption happen
simultaneously.Thus, it cant be kept
in stock
No transfer of ownership
It is an activity or process
8. What are the 4 Ps of marketing OR what is marketing mix ?

Ans : 1.Price 2. Product 3. Place 4. Promotion
9. What are 4 Cs of marketing?
Ans :
1. Customer needs and wants
2. Cost to the customer
3. Convenience
4. Communication
10. What are the 7 Ps of Service Marketing ?
Ans :
1. Product (i.e. service)
2. Price
3. Promotion
4. Place
5. People ( Employees involved in delivering service to customers)
6. Physical Evidence
7. Process
11. What is Maslows Hierarchy of Needs ?
Ans :
Maslow categorized customers needs into 5 types
1. Physiological needs : food , drink , sleep
2. Safety needs : protection from threatening situation and economic security.
3. Social needs : friendship , affection and sense of belonging
4. Esteem needs : self respect , recognition , status and success
5. Self actualization : self fulfillment.
12. What is a product life cycle?
Ans :
Product life can be divided into 4 stages.
1. Introduction : Period of initial low sales and slow pick up in the market. Eg : net banking and mobile banking.
2. Growth : Sales grow rapidly due to fast increasing market acceptance resulting in substantial improvement in profits. Eg:
RTGS and NEFT.
3. Maturity : A slowdown in sales growth rate leading to peaking of sales , due to the potential buyers having been fully tapped.
4. Decline : Sales at this stage experience a declining rate of growth and profits erode. Eg : Demand Draft.
13. What are the two costs which have to be considered while pricing bank products?
Ans: 1. Interest Cost 2. Service Cost
14. What are the distribution channels involved in banking services?
Ans:
1. Bank Branch
2. Telephone Banking and Call Centers
3. Automated Teller Machines
4. Virtual Branches and Automated Video Banking.
15. What is Banking Codes Standards Board of India (BCSBI).?
Banking Codes Standards Board of India (BCSBI)
The Reserve Bank of India established BCSBI in 2007 to ensure that the common consumer of financial services from the
banking industry gets what he/she has been promised. The Board operates as an independent and autonomous body.
Membership of BCSBI is voluntary and open to scheduled banks.
From 2015, performance ratings of Banks on customer services will be put in public domain by Banking Codes Standards
Board of India (BCSBI).
BCSBI is rating banks on customer services on 5 parameters:
Information dissemination
Transparency
Customer-centricity
Grievance redressal system
Customer feedback
BCSBI rated 48 banks for customer service of which only 5 scored high ratings; 25 were rated above average; 17 average; and
one below average. The ratings will be made public in 2015. However, banks are not allowed to use these ratings to solicit
business.
Code of Banks Commitment to Customers
The Code of Banks Commitment to Customers is a Code of Customer Rights, which sets minimum standards of banking
practices that member banks have to comply with when they deal with individual customers. The Code provides protection to
customers and explains the manner in which banks are supposed to deal with customers in their day-to-day operations.

Measures of Monetary Policy: Ramification Curtail

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Monetary Policy of India

TOOLS OF QUALITATIVE MEASURES:

Read more: http://www.bankersadda.com/2015/01/monetary-policy-of-india.html#ixzz3OJqclLVd

Marketing Questions For The Interview

3. What is marketing management?

8. What are the 4 Ps of marketing OR what is marketing mix ?

Grievance redressal system

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