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Monetised Deficit

About Monetised Deficit

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What is Monetised Deficit

Monetised deficit is the monetary support the Reserve Bank of India (RBI) extends to the Centre as part of the government's borrowing programme. In other words, the term refers to the purchase of government bonds by the central bank to finance the spending needs of the government.
 
Also known as debt monetisation, the exercise leads to an increase in total money supply in the system, and hence inflation, as RBI creates fresh money to purchase the bonds. The same bonds are later used to bring down inflation as they are sold in the open market. This helps RBI suck excess money out of the market and rein in rising prices.

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Latest News

At least 9 killed in massive fire at multi-storey building in Delhi's Palam

Family of 9, including three children were killed in fire at multi-storey building in south Delhi's Palam

Updated On: 18 Mar 2026 | 1:11 PM IST

Stock Market LIVE: Sensex rises 740 points, Nifty trades near 23,800; Brent crude eases to $100

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Updated On: 18 Mar 2026 | 1:11 PM IST

Burger Singh raises ₹82 crore in funding round led by Artal Asia

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Updated On: 18 Mar 2026 | 1:09 PM IST

OpenAI launches GPT-5.4 mini, nano for faster AI workloads: Check details

OpenAI has expanded its GPT-5.4 lineup with mini and nano models aimed at improving speed, cost efficiency and responsiveness in AI systems

Updated On: 18 Mar 2026 | 1:00 PM IST

Pakistan's deadly strikes in Afghanistan prompt calls for ceasefire

The European Union called Pakistan's attack on a medical facility in Kabul "another deadly escalation in a conflict that needs to end as soon as possible"

Updated On: 18 Mar 2026 | 12:58 PM IST

Resolution plan: Why Jaiprakash Power is soaring while JAL shares slip?

The NCLT, Allahabad Bench, orally approved the resolution plan submitted by Adani Enterprises for JAL under the Insolvency and Bankruptcy Code, according to exchange filings

Updated On: 18 Mar 2026 | 12:57 PM IST

Iran attacks Israel, Gulf nations after Israeli strike kills Ali Larijani

The attacks came hours after Iranian state media confirmed Israel's military killed top Iranian security official Ali Larijani in an overnight strike

Updated On: 18 Mar 2026 | 12:57 PM IST

Iran vows revenge for Ali Larijani as Trump says war may end soon

Iran launched fresh waves of missile and drone attacks, targeting the United Arab Emirates, Saudi Arabia and Kuwait. It also struck Tel Aviv

Updated On: 18 Mar 2026 | 12:53 PM IST

₹5 trn gain: Sensex zooms 800 pts, Nifty tops 23,800; Key reasons here

Stock market rising today: Sensex and Nifty 50 rallied more than 1 per cent today, building on gains of the past two trading sessions, amid a firm trend in global markets

Updated On: 18 Mar 2026 | 12:49 PM IST

Meta moves Delhi HC against ₹10 lakh fine over walkie-talkie sale

Meta's counsel argued Facebook is only a "notice board", not an e-marketplace like Amazon or Flipkart, and hence the CCPA has no jurisdiction over it

Updated On: 18 Mar 2026 | 12:42 PM IST

After Galaxy S26, Google rolls out Gemini task automation to Pixel 10

Reportedly, Gemini task automation is rolling out to the Pixel 10 series devices, letting the assistant handle tasks like food orders and ride bookings inside apps

Updated On: 18 Mar 2026 | 12:39 PM IST

PVR Inox gains ahead of 'Dhurandhar: The Revenge' release; analysts upbeat

'Dhurandhar: The Revenge' is expected to surpass the box office performance of its predecessor, according to PL Capital, as the film gears up for release on Thursday

Updated On: 18 Mar 2026 | 12:36 PM IST

Iran's Foreign Minister warns system remains solid despite Larijani's death

Iranian Foreign Minister emphasised that the presence or absence of a single individual does not affect the political structure of the nation

Updated On: 18 Mar 2026 | 12:34 PM IST

What to know about Iran's Bushehr nuclear plant as projectile hits complex

Neither Iran nor Russia say there was any release of nuclear material in the incident

Updated On: 18 Mar 2026 | 12:32 PM IST

'There's no full stop in politics': PM bids farewell to 59 Rajya Sabha MPs

Prime Minister Narendra Modi bid farewell to retiring Rajya Sabha MPs as senior leaders Mallikarjun Kharge, Sharad Pawar, and several others completed their terms in the Upper House

Updated On: 18 Mar 2026 | 12:30 PM IST

Licious focuses on micro-markets to scale growth, expand dark stores

Licious is focusing on micro-markets within cities to drive growth, planning to scale dark stores and deepen presence in high-demand neighbourhoods

Updated On: 18 Mar 2026 | 12:28 PM IST

Messi frustrated as ARG vs ESP Finalissima cancelled ahead of World Cup

The Inter Miami star had approached the Finalissima game with ambition, viewing it as a serious final, but he was not involved in the decision-making that led to its cancellation.

Updated On: 18 Mar 2026 | 12:26 PM IST

SGB Series IV investors get 312% returns as RBI sets exit price for bonds

Online buyers are set to turn a Rs 1 lakh investment into over Rs 4.12 lakh, though policy shifts will soon restrict tax-free gains to original subscribers

Updated On: 18 Mar 2026 | 12:20 PM IST

Rs 1,000 monthly pension inadequate for needs, says Parliamentary panel

Committee calls for a 'more realistic' payout aligning with demands to raise the monthly floor to Rs 7,500

Updated On: 18 Mar 2026 | 12:16 PM IST

FIFA partners with YouTube for unique streaming format for 2026 World Cup

A key feature of the agreement is FIFA's plan to encourage broadcasters to show the first 10 minutes of matches live on YouTube

Updated On: 18 Mar 2026 | 12:08 PM IST