Market Stabilization Bond
- MSS bonds bear an interest rate that can boost banks’ income. This incentivizes banks to participate effectively in demonetization drive.
- MSS as SLR bonds: MSS bonds can also be used to calculate banks’ mandatory bond holding.
- MSS bonds does not increase Government’s fiscal deficit.
- According to CRISIL, the stock of G-secs with the RBI, necessary to conduct reverse repo operations, is limited. So MSS is needed.
Like this:
Like Loading...
Related
tagged with Economy, Exam, exams, Federal Policy, IAS, India, Indian Economy, Market Stabilisation Bond, Monetary, MPC, MSS, Policy, RBI, Reserve BANK of India, upsc
You must log in to post a comment.