Indian Economy
Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfers are

tax sharing
grant-in-aids
all of the listed here
loans

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Indian Economy
If the RBI adopted an expansionist open market operations policy, this means that it will

buy securities from non-government holders
openly announce to the market that it intends to expand credit
sell securities in the open market
offer commercial banks more credit in the open market

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Indian Economy
In pursuance with the recommendations of Narsimham Committee, the RBI has framed new guidelines

to lend more easily for industrial development
to govern entry of new private sector banks to make the banking sector more competitive
to reduce the freedom given to banks to rationalize their existing branch network
to setup more foreign exchange banks

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