SHILLONG: To communicate the essence of monetary policy formulation to the students with an intention to percolate the same down to the grassroot level through the academic circle, a Special Monetary Policy Dissemination programme, especially for the North-Eastern states was organised at St. Anthony’s College here on Friday.
Organised jointly by the Departments of Economics, Business Administration and Commerce of the College, this programme was attended by faculty members and around 700 students from St. Anthony’s College, Shillong and other colleges of Shillong.
Delivering the keynote address on “Framework of Monetary Policy in India”, Executive Director of RBI central office Deepak Mohanty highlighted the recent changes in the framework as well as in the operating procedure of monetary policy in the country.
“The RBI has been relying more and more on indirect method of control through interest rate mechanism although broad money supply continues to remain as an important information variable along with a host of other indicators under the multiple indicator approach,” he added.
Giving a gist on the challenges amidst uncertainties while drafting the Monetary Policy for 2013-2014, Adviser in the RBI Monetary Policy Department, Dr B.K. Bhoi explained about the global and domestic challenges faced by the RBI while formulating the Annual Monetary Policy for 2013-14.
According to Bhoi, the RBI could not be more aggressive in cutting policy rates as inflation remained above the comfort level of RBI and the current account deficits (CAD) having aggravated to a historically high level.
Meanwhile, Sangeeta Das, who is the Director in the Department of Communication, RBI delivered a lecture on the requirement of the proper communication mechanism so that all stakeholders can have adequate information about the policy pursued by RBI.
Later, in the penal discussion, Regional Director of RBI, P.K. Jena stressed that chit fund companies are neither given license to collect public deposit nor regulated by the RBI stating that the regulation/prohibition of activities undertaken by chit fund companies is the responsibility of the concerned State governments.