Thursday 24 April 2014
Wednesday 23 April 2014
Brand Ambassador Company List
| Company Name-Brand | Brand Ambassador |
| US-based beauty care products company Avon | Bollywood actor Asin |
| Lifestyle ethnic wear brand 'Melange' | Deepika Padukone |
| Tata's all new range of Tetley green tea | Kareena Kapoor Khan |
| Puri Oil Mills Limited- popular brand of mustard oil, ‘P’ Mark | Boman Irani |
| Cadbury - Oreo | Ranbir Kapoor |
| Okaya Power Group, an inverter and UPS battery manufacturer | Veteran actor Dharmendra |
| Mars India ambassador | Arjun Rampal |
| Indian Film Festival of Melbourne | Vidya Balan |
| Dabur-Chyawanprash | Madhuri Dixit |
| FMCG firm DS Group-Rajnigandha Silver Pearls | Bollywood actor Priyanka Chopra |
| Gujarat Election Commission | Cricketer Cheteshwar Pujara |
| Delhi poll | Comedian Kapil Sharma, Soha Ali Khan, Virat Kohli |
| Kellogg's Special K | Deepika Padukone |
| ABD | batsman Shikhar Dhawan |
| NIIT | Viswanathan Anand |
| Vodafone's global brand ambassador | Mary Kom |
| Guess-global brand ambassador | Priyanka Chopra |
| Multi-brand retail store chain Wee Store | actress Sri Devi |
| retail chain Malabar Gold & Diamonds | Kareena Kapoor |
| Swedish luxury carmaker Volvo Auto India | Jeev Milkha Singh |
| Cavin’s Milkshakes | Ravichandran Ashwin |
| TVS Motor Company | Telgu film hero Mahesh Babu |
| H&R Johnson (India) | Katrina Kaif |
| Reebok India | JohnAbraham |
| Videocon consumer durables | Shahrukh Khan |
| Bagpiper Whiskey | Ajay Devgan |
| WHIRLPOOL | Kajol and Ajay Devgan |
| RASNA | Karisma Kapoor & Hrithik Roshan |
| EPSON Printers | Sushmita Sen |
| NEWPORT Jeans | Saif Ali Khan |
| MARCO-RICCI Shoes | Sanjay Dutt |
| LEVIS Jeans Levis 501 range | Bipasha Basu & Shahrukh Khan |
| ACME Clothing PROVOGUE | Fardeen Khan |
| RADO | Lisa Ray |
| MOVADAO | Twinkle khanna |
| LONGINES | Aishwariya Rai |
| TAG HEUER | Sharukh/Sushmita sen |
| Red Tape Shoe | Salman Khan |
| FRANKFINN AIR HOSTESS ACEDEMY | Soha Ali Khan |
| CAMAY Soap | Dia Mirza |
| Max New York Insurance | Rahul Dravid |
| Liril | Priety Zinta, Harishta Bhatt, Tara Sharma |
| Castrol | Ajay Jadeja and Rahul Dravid |
| Veedol | Vinod Kambli |
Tuesday 22 April 2014
Instruments of Monetary Policy RBI
Instruments of Monetary Policy used by the RBI
Direct regulation:
For example, if the RBI reduces the CRR from 5% to 4%, it means that commercial banks will now have to keep a lesser proportion of their total deposits with the RBI making more money available for business. Similarly, if RBI decides to increase the CRR, the amount available with the banks goes down.
Indirect regulation:
The RBI issues annual and quarterly policy review statements to control the availability and the supply of money in the economy. The Repo Rate has traditionally been the key instrument of monetary policy used by the RBI to fight inflation and to stimulate growth.
Direct regulation:
Cash Reserve Ratio (CRR):
Commercial Banks are required to hold a certain proportion of their deposits in the form of cash with RBI. CRR is the minimum amount of cash that commercial banks have to keep with the RBI at any given point in time. RBI uses CRR either to drain excess liquidity from the economy or to release additional funds needed for the growth of the economy.For example, if the RBI reduces the CRR from 5% to 4%, it means that commercial banks will now have to keep a lesser proportion of their total deposits with the RBI making more money available for business. Similarly, if RBI decides to increase the CRR, the amount available with the banks goes down.
Statutory Liquidity Ratio (SLR):
SLR is the amount that commercial banks are required to maintain in the form of gold or government approved securities before providing credit to the customers. SLR is stated in terms of a percentage of total deposits available with a commercial bank and is determined and maintained by the RBI in order to control the expansion of bank credit. For example, currently, commercial banks have to keep gold or government approved securities of a value equal to 23% of their total deposits.Indirect regulation:
Repo Rate:
The rate at which the RBI is willing to lend to commercial banks is called Repo Rate. Whenever commercial banks have any shortage of funds they can borrow from the RBI, against securities. If the RBI increases the Repo Rate, it makes borrowing expensive for commercial banks and vice versa. As a tool to control inflation, RBI increases the Repo Rate, making it more expensive for the banks to borrow from the RBI with a view to restrict the availability of money. The RBI will do the exact opposite in a deflationary environment when it wants to encourage growth.Reverse Repo Rate:
The rate at which the RBI is willing to borrow from the commercial banks is called reverse repo rate. If the RBI increases the reverse repo rate, it means that the RBI is willing to offer lucrative interest rate to commercial banks to park their money with the RBI. This results in a reduction in the amount of money available for the bank’s customers as banks prefer to park their money with the RBI as it involves higher safety. This naturally leads to a higher rate of interest which the banks will demand from their customers for lending money to them.The RBI issues annual and quarterly policy review statements to control the availability and the supply of money in the economy. The Repo Rate has traditionally been the key instrument of monetary policy used by the RBI to fight inflation and to stimulate growth.
Urjit Patel Panel Key Recommendations
The key recommendations by Urjit Patel Committee Report to Review and Strengthen the Monetary Policy Framework are as follows:
(i) The headline Consumer Price Index (CPI) should be the nominal anchor
for monetary policy and the Reserve Bank of India (RBI) should make
this the predominant objective.
(ii)The nominal anchor for inflation should be set for a two-year
horizon at 4 per cent with a band of plus or minus 2 per cent. Since the
present CPI inflation is 10 per cent the Committee recommends a ‘glide
path’ of 8 per cent for January 2015 and 6 per cent for January 2016.
(iii) The Central Government needs to reduce the fiscal deficit to 3.0
per cent of GDP by 2016-17. Administered prices, wages and interest
rates are impediments to transmission of monetary policy and should be
eliminated.
(iv) Monetary policy decisions should be vested in a Monetary Policy
Committee (MPC) comprising the Governor, the Deputy Governor and
Executive Director in charge of monetary policy and two external
full-time members. The decisions of the MPC will be by voting. Members
will be accountable for failure to attain the target—failure being
defined as inability to attain the target for three successive quarters.
(iv)The real policy rate should be positive. In the first phase the
weighted average call rate would be the operative target and the repo
rate would be the single policy rate. The funds available at the repo
rate would be restricted and increasingly liquidity would be provided at
the 14 day term repo; longer-term repo auctions should be introduced.
(v) In the second phase, the 14-day repo rate would be the operative
target and recourse to outright two-way open market operations (OMO)
would determine liquidity. OMO should not used to manage yields on
government securities.
(vi)There should be a remunerated standing deposit facility at the RBI to sterilise excess liquidity.
(vii) With an independent debt management office, the market
stabilisation scheme and cash management bills should be phased out.
(viii) All sector specific refinance should be phased out as committed to the Asian Development Bank in 1992.
Monetary Policy of India- concepts
DO you Know the difference between Monetary Policy and Fiscal Policy? To know more Click here.
Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
The term monetary policy is also known as the 'credit policy' or called 'RBI's money management policy' in India. In India, the Reserve Bank of India (RBI) is in charge of monetary policy. Monetary policy is one of the ways that the Indian government attempts to control the economy. If the money supply grows too fast, the rate of inflation will increase; if the growth of the money supply is slowed too much, then economic growth may also slow.
As of 29 January 2014, the key indicators are
I. Lack of Coordination between Monetary and Fiscal Policy
II. Large percentage of MOney never come in the mainstream economy.
III. Existence of non-monetized economy- barter type or similar types do exists.
IV. Excess Non-Banking Financial Institutions
V. Existence of Unorganized Financial Markets
Recommended Reading:
I.Recommendations of Urjit Patel Committee Report to Review and Strengthen the Monetary Policy Framework .
II.Instruments of Monetary Policy used by the RBI
Monetary policy:
Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
The term monetary policy is also known as the 'credit policy' or called 'RBI's money management policy' in India. In India, the Reserve Bank of India (RBI) is in charge of monetary policy. Monetary policy is one of the ways that the Indian government attempts to control the economy. If the money supply grows too fast, the rate of inflation will increase; if the growth of the money supply is slowed too much, then economic growth may also slow.
As of 29 January 2014, the key indicators are
| Indicator | Current rate |
| Inflation | 8.10% |
| Bank rate | 9% |
| CRR | 4.00% |
| SLR | 23% |
| Repo rate | 8.00% |
| Reverse repo rate | 7.00% |
| Marginal Standing facility rate | 9.00% |
Key Objectives of Monetary Policy
- Rapid Economic Growth
- Price Stability
- Exchange Rate Stability
- Balance of Payments (BOP) Equilibrium
- Full Employment
- Neutrality of Money
- Equal Income Distribution
Obstacles In Implementation of Monetary Policy:
I. Lack of Coordination between Monetary and Fiscal Policy
II. Large percentage of MOney never come in the mainstream economy.
III. Existence of non-monetized economy- barter type or similar types do exists.
IV. Excess Non-Banking Financial Institutions
V. Existence of Unorganized Financial Markets
Recommended Reading:
I.Recommendations of Urjit Patel Committee Report to Review and Strengthen the Monetary Policy Framework .
II.Instruments of Monetary Policy used by the RBI
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