Question

Name The Fund Management Scheme Introduced By Rbi Which Helps The Banks In Their Fund Management?

Answer 1

Answer:

Management of Public Debt

The union budget decides the annual borrowing needs of the Central Government. Parameters, such as, interest rate, timing and manner of raising of loans are influenced by the state of liquidity and the expectations of the market. The Reserve Bank’s debt management strategy aims at minimising the cost of borrowing, reducing the roll-over and other risks, smoothening the maturity structure of debt, and improving depth and liquidity of Government securities markets by developing an active secondary market