Monetary Policy & Banking System

Repo, Reverse Repo, CRR, SLR, Open Market Operations, Monetary Policy Committee (MPC), and NPAs.

Target: EPFO APFC 2026•Topic-Level RAG Context Active•Model: Nemotron 3.5 Lightning 30B / 120B

Topic Overview

Repo, Reverse Repo, CRR, SLR, Open Market Operations, Monetary Policy Committee (MPC), and NPAs.

Key Syllabus Concepts

Quantitative Tools: Repo Rate, Bank Rate, CRR, SLR, OMO, Marginal Standing Facility (MSF)
Qualitative Tools: Margin requirements, Moral suasion, Credit rationing
Monetary Policy Committee (MPC) structure (6 members, 4% target with +/- 2% band)
Non-Performing Assets (NPAs), IBC 2016, SARFAESI Act, and Bad Bank (NARCL)

High-Yield Important Points & Rules

💡 CRR is held with RBI in cash and earns NO interest.
💡 SLR is held by bank with itself in liquid assets (cash, gold, approved govt securities).
💡 MPC inflation target is set by Govt of India in consultation with RBI every 5 years.

Historical UPSC EPFO PYQ Relevance

3 Matched PYQs

2025•EPFO APFC•General Ability Test• Q.30

Full Question

Consider the following statements regarding Social Protection in India. Which of the statements given above is/are correct?

The World Social Protection Report (WSPR) 2024-26 released by the International Labour Organization estimates that India's social protection coverage has doubled from 2021 to 2024.

The Ministry of Labour and Employment estimates that nearly 65% of the population are now covered by at least one form of social protection, whether in cash or in kind, through Central Government schemes.

2025•EPFO APFC•General Ability Test• Q.38

Full Question

Core inflation includes which of the following?

Food prices

Energy prices

2025•EPFO APFC•General Ability Test• Q.61

Full Question

Which one among the following correctly stands for SSL encryption with regard to banking websites?

Ready to practice this subtopic?

Launch the interactive AI teacher or solve full mock tests.