Multiple choice

In which year, the practice of RBI lending to the government through ad hoc treasury bills was given up?

  1. 1997

  2. 1991

  3. 2001

  4. 2007
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The practice of RBI lending to the government through ad hoc treasury bills (a source of automatic monetization of fiscal deficit) was discontinued in 1997 as part of fiscal discipline and financial sector reforms.

Keep practicing — related questions