Abstract

S. Vanitha1*, P. Nageswari2 and P. Srinivasan3

Monetary policy is the process by which the Central Bank or Monetary authority of a country controls the supply of money, often targeting a rate of interest. Every year Reserve Bank of India changes the cash reserve ratio (CRR), statutory liquidity ratio (SLR), prime lending rates (PLR), Repo Rate etc, to control the money supply of the country. This paper aim to discuss about the impact of reverse repo rate and cash reverse ratio in the share price of banking companies listed in National Stock Exchange. The analysis of the study showed that the security prices reacted to the announcements of reverse repo rate and cash reserve ratio.