liquidity, and in the balance sheet of the Central Bank. Such control over its own balance sheet is the core, central function … of any Central Bank, even more so than its role in setting short-term interest rates, which latter could be delegated. We …

environment in which Reserve Bank implements its policies. This paper tries to explore the specific impact of financial innovation … on the monetary transmission mechanism, and hence the capacity of Reserve Bank to stabilise the economy and promote long … policies. Financial innovation puts effect on the policies of Reserve Bank through interest rate, credit and exchange rate …