As a part of collaborative arrangements for an independent body, the RBI will fully meet the budgetary requirements for the first five years while the banks would, during this period, contribute to building the corpus of the BCSBI to enable it to eventually become a self-sustaining organisation.
As domestic asset prices are increasingly determined by global factors, the transmission channels of monetary policy measures might change as well. This is especially relevant to long-term interest rates as they constitute one of the main variables through which monetary policy influences economic outcomes and inflation. Does globalisation mean that monetary policy is losing its leverage over domestic long-term interest rates?