Скачать или смотреть Liquidity Adjustment Facility Aim, usage, introduce, full form, monetary policy explain in English.

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🎊Liquidity Adjustment Facility (LAF)🎊


👉A liquidity Adjustment Facility (LAF) is a monetary policy that allows banks to borrow money through
repurchase agreements.

👉Liquidity Adjustment Facility consists of repo and reverses repo
operations.

👉In Liquidity Adjustment Facility, money transaction is done via RTGS (Real time Gross
settlement).

👉where RTGS is an online money transfer method.

👉The aim of term repo is to help develop the inter-bank term money market,
which in turn can set market-based benchmarks for the pricing of loans and
deposits, and hence improve the transmission of monetary policy.

👉A liquidity Adjustment Facility is used
to aid banks in adjusting the day-to-day mismatches in liquidity.



🤔DO YOU KNOW Which banks can participate in LAF?
👉RBI has allowed regional rural banks (RRBs) to access the liquidity adjustment facility (LAF)
and marginal standing facility (MSF) in order to facilitate better liquidity management for these lenders


🤔Do you know When was liquidity adjustment facility introduced by the RBI?
👉As announced in the Statement on Monetary and Credit Policy for the year 2001-02,
the existing Liquidity Adjustment Facility has been reviewed and certain amendments have been made.
The revised Scheme will be made effective from May 8, 2001.