Which of the following is incorrect about Bank Rate ........

Economic and Social Issues Monetary and Fiscal Policy

Which of the following is incorrect about Bank Rate?

It is the rate at which the Reserve Bank of India is ready to buy or rediscount bills of exchange or other commercial papers

The Bank Rate is published under Section 49 of the Banking Regulation Act, 1949

This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes

Bank rate is a quantitative instrument of monetary policy

None of the options given above

छोटे Courses बड़े Results

Master Monetary and Fiscal Policy

Prepare through Micro-courses

Try Now

Explanation:

Section 49 in The Reserve Bank of India Act, 1934

49. Publication of Bank rate.—The Bank shall make public from time to time the standard rate at which it is prepared to buy or re-discount bills of exchange or other commercial paper eligible for purchase under this Act. on the other hand section 49 of the banking regulation act contains Special provisions for private banking companies.