A
It determines the foreign exchange reserve allocations for public sector oil marketing companies.
B
It acts as the penal borrowing window for commercial banks against their excess Statutory Liquidity Ratio (SLR) holdings.
C
It serves as the operating target of RBI monetary policy reflecting uncollateralised overnight interbank lending rates.
D
It functions as the collateral-free deposit rate floor for the entire Liquidity Adjustment Facility corridor.
Correct answer: (c) It serves as the operating target of RBI monetary policy reflecting uncollateralised overnight interbank lending rates.
Explanation
Option C is correct because the Weighted Average Call Rate is the operating target of the RBI's monetary policy, reflecting uncollateralised overnight interbank lending rates. Option B describes the Marginal Standing Facility, option A relates to forex windows, and option D describes the Standing Deposit Facility.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2024 · Q42 · General Studies · 2 marks
Consider the following statements: 1. In India, Non- Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct? -
2020 · Q57 · General Studies · 2 marks
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2025 · Q62 · General Studies · 2 marks
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2023 · Q10 · General Studies · 2 marks
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