What is adjusted net bank credit in simple terms?

In simple terms, ANBC is the net banking credit after taking into account bill discounting, non-SLR securities and other exemption via long-term bonds. …

What is adjusted net bank credit Quora?

Adjusted Net Bank Credit (ANBC) is Net Bank Credit added to investments made by banks in non-SLR bonds (in held-to-maturity (HTM)) or it is the credit equivalent of off-balance-sheet exposures, whichever is higher.

What is net bank credit to government?

‘Net bank credit to Government’ comprise the RBI’s net credit to Central and State Governments and commercial and co-operative banks’ investments in Central and State Government securities. ‘Bank credit to commercial sector’ include RBI’s and other bank’s credit to commercial sector.

What is meant by narrow money?

Narrow money is a category of money supply that includes all physical money such as coins and currency, demand deposits, and other liquid assets held by the central bank. In the United States, narrow money is classified as M1 (M0 + demand accounts).

What is SLR and Non-SLR?

The ratio of prescribed liquid investments to deposits is termed as statutory liquidity ratio. In India, banks invest in bonds issued by the government and notified by the Reserve Bank of India as qualifying for SLR to meet the prescribed ratio.

What do you mean by bank credit?

The term bank credit refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Bank credit, therefore, is the total amount of money a person or business can borrow from a bank or other financial institution.

WHO issues priority sector lending certificate?

Reserve Bank of India
Reserve Bank of India issues Notification on “Priority Sector Lending Certificates” and issues instructions on trading in PSLCs.

What is M3 and M4 money?

M3 and M4 are known as broad money. These gradations are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply.