Don’t miss the latest developments in business and finance.

image

Monetised Deficit

About Monetised Deficit

Facebook IconLinkedIN Icon

What is Monetised Deficit

Monetised deficit is the monetary support the Reserve Bank of India (RBI) extends to the Centre as part of the government's borrowing programme. In other words, the term refers to the purchase of government bonds by the central bank to finance the spending needs of the government.
 
Also known as debt monetisation, the exercise leads to an increase in total money supply in the system, and hence inflation, as RBI creates fresh money to purchase the bonds. The same bonds are later used to bring down inflation as they are sold in the open market. This helps RBI suck excess money out of the market and rein in rising prices.

Here are the latest news from Business Standard

Latest News

Telangana Chief Minister A Revanth Reddy on Saturday alleged that Arjun visited the theatre during the film's screening despite police permission being denied, a charge that the actor denied

Updated On: 22 Dec 2024 | 6:13 PM IST

Stay with us for all the major news updates from around the world

Updated On: 22 Dec 2024 | 6:11 PM IST

The National Conference on Sunday ruled out joining the BJP-led NDA and dismissed as baseless a media report in this regard.

Updated On: 22 Dec 2024 | 6:10 PM IST

Iran had provided crucial support to Assad throughout Syria's nearly 14-year civil war, which erupted after he launched a violent crackdown on a popular uprising against his family's decades-long rule

Updated On: 22 Dec 2024 | 5:58 PM IST

This initiative aims to bolster the country's medical sector, which currently operates approximately 50,000 ambulances

Updated On: 22 Dec 2024 | 5:51 PM IST

He also said that for any democracy to succeed, expression and dialogue must go hand in hand with great responsibility on both sides

Updated On: 22 Dec 2024 | 5:46 PM IST

With decarbonisation in focus, efforts are being made to reduce emissions and over years, Indian carriers have operated some flights with a blend of Sustainable Aviation Fuel (SAF) and traditional ATF

Updated On: 22 Dec 2024 | 5:44 PM IST

Police said they were investigating the two incidents, only days after another stampede in which several children were killed

Updated On: 22 Dec 2024 | 5:37 PM IST

She also hit out at the BJP, alleging the ruling party and the Congress are cut from the same cloth when it comes to taking Ambedkar's name for vote bank politics

Updated On: 22 Dec 2024 | 5:31 PM IST

Earlier, Kejriwal on Saturday announced the Dr Ambedkar Scholarship for the higher education of Dalit students. He stated that under this scholarship scheme

Updated On: 22 Dec 2024 | 5:26 PM IST

With the infusion, the government of India's holding in the company is expected to further increase from existing 71.72 per cent as on September 2024

Updated On: 22 Dec 2024 | 5:15 PM IST

The overarching theme of this year has been the RBI's new approach to vigilance

Updated On: 22 Dec 2024 | 5:15 PM IST

The initial public offering (IPO) will close on December 27. The bidding for anchor investors will open for a day on Monday

Updated On: 22 Dec 2024 | 5:12 PM IST

Market participants said that the price difference is largely driven by heavy supply, timing mismatches in fund flows, and rising global interest rates

Updated On: 22 Dec 2024 | 5:11 PM IST

European Union (EU) has been negotiating a separate investment protection agreement or treaty with India, and not as part of the India-EU free trade agreement

Updated On: 22 Dec 2024 | 5:09 PM IST

England's poor performance in last year's World Cup, where Root scored just 276 runs at an average of 30.66, led to the decision to explore opportunities for younger players.

Updated On: 22 Dec 2024 | 5:06 PM IST

The state's startup ecosystem has been 'thriving' with 9 regional hubs and a metro hub in Chennai, providing a robust infrastructure for budding entrepreneurs to grow

Updated On: 22 Dec 2024 | 5:02 PM IST

According to The Verge, this feature is part of a broader rollout of context-aware capabilities in Gemini, designed to enhance the way users interact with their digital files

Updated On: 22 Dec 2024 | 4:46 PM IST

Addressing a public meeting here after visiting a village where displaced Bru tribals were rehabilitated, Shah said that Tripura remained behind on all parameters of development during communist rule

Updated On: 22 Dec 2024 | 4:45 PM IST

The ceiling prices of seven other drugs were revised to include the impact of the 0.00551 per cent increase in drug prices in the National List of Essential Medicines

Updated On: 22 Dec 2024 | 4:45 PM IST

No More Data