Question
The new monetary Policy tool introduced by RBI this
year in place of Reverse Repo was recommended earlier by which committee?Solution
The SDF as a liquidity management instrument was recommended by the ‘Expert Committee to Revise and Strengthen the Monetary Policy Framework’ (Chairman Urjit R Patel) in January 2014. In 2018, the Section 17 of the RBI Act, 1934, was amended to empower the RBI to introduce this instrument, which has now been launched in 2022
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