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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.

Here are the latest news from Business Standard

Latest News

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Commerce minister says India will secure concessional-duty access for garments made from US yarn and cotton, similar to benefits obtained by Bangladesh

Updated On: 12 Feb 2026 | 6:43 PM IST

India vs Namibia LIVE SCORE T20 World Cup 2026: Namibia bowling first; Samson, Bumrah included in XI

India's squad has received a boost with Washington Sundar's return, although fitness concerns remain.

Updated On: 12 Feb 2026 | 6:43 PM IST

T20 World Cup 2026: India vs Namibia preview, toss time, live streaming

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Updated On: 12 Feb 2026 | 6:42 PM IST

Britannia share price rises post Q3; Nomura, MOFSL, Emkay see more upside

Britannia Industries shares rise after Q3FY26 earnings beat with strong margin expansion. Nomura raises target to ₹7,275; MOFSL, JM Financial, ICICI Securities remain bullish on stock

Updated On: 12 Feb 2026 | 6:42 PM IST

India vs Namibia live streaming: Where to watch today's T20 WC 2026 match?

Namibia come into this match with experience playing in New Delhi, which could work in their favor.

Updated On: 12 Feb 2026 | 6:41 PM IST

T20 WC 2026: IND vs NAM pitch report and Arun Jaitley Stadium key stats

After facing some early challenges, the Men in Blue managed to recover and secure a win vs USA, putting them at the top of Group A.

Updated On: 12 Feb 2026 | 6:38 PM IST

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Updated On: 12 Feb 2026 | 6:37 PM IST

AI Impact Summit to showcase indigenous development of SLM and LLMs

Government to showcase homegrown large and small language models at five-day summit; Sarvam's LLM and funding for AI data centres may be announced

Updated On: 12 Feb 2026 | 6:27 PM IST

Wipro to hike salaries from March 1, bringing much-needed relief to staff

IT major to implement salary increments from March 1 after deferring hikes in September; percentage of increase not immediately specified

Updated On: 12 Feb 2026 | 6:21 PM IST

IAF to train RAF pilots: All British academies now host Indian instructors

The IAF instructors to be deployed to RAF Valley will instruct on the trainer aircraft BAE Hawk T2 or Texan T1

Updated On: 12 Feb 2026 | 6:18 PM IST

Angela Merkel to deliver first Manmohan Singh Memorial Lecture in Delhi

Merkel, who shared good ties with the former prime minister, will deliver the inaugural lecture series in memory of Singh. She will speak on "Germany and India in times of global change"

Updated On: 12 Feb 2026 | 6:04 PM IST

Agnikul to host orbital data centre, ropes in NeevCloud as first customer

Chennai-based space tech start-up will use its patented upper-stage platform to host AI data modules in orbit, with NeevCloud as its first customer

Updated On: 12 Feb 2026 | 6:02 PM IST

Sebi to review NSDL root-cause report on tech glitch: Tuhin Kanta Pandey

Regulator will examine NSDL's root cause analysis of the recent technical glitch that disrupted inter-depository settlements, Chairman Tuhin Kanta Pandey said

Updated On: 12 Feb 2026 | 6:01 PM IST

Shell to expand integrated gas, GCC footprint in India: Mansi Tripathy

The $289 billion energy major plans to sign more LNG deals and expand global capability centres, while strengthening its lubricants business in India

Updated On: 12 Feb 2026 | 6:00 PM IST

CCI imposes ₹27.38 crore penalty on Intel Corp for unfair biz practices

The penalty has been imposed on the company for abusing its dominant position in the market for Boxed Micro Processors (BMPs) for desktops in India

Updated On: 12 Feb 2026 | 5:58 PM IST

Sebi mulls measures to cut regulatory costs, study market impact

Regulator is considering a centre for regulatory studies and an expert panel to assess compliance burden and cost impact across the market ecosystem

Updated On: 12 Feb 2026 | 5:55 PM IST

T20 WC 2026: Italy stun Nepal to secure maiden T20 World Cup win in Mumbai

The Mosca brothers who opened for Italy put up an unbeaten and fiery 124-run stand on the day to hand their team the famous win in style.

Updated On: 12 Feb 2026 | 5:54 PM IST

Nepal vs Italy HIGHLIGHTS T20 World Cup 2026: Mosca brothers power Italy to 10-wicket win over Nepal

ICC T20 World Cup HIGHLIGHTS: This is Italy's first-ever win in the T20 World Cup in their debut edition

Updated On: 12 Feb 2026 | 5:53 PM IST

Dabur opens first South India manufacturing plant, to invest ₹400 crore

FMCG major begins work on its first South India manufacturing facility at Tindivanam, Tamil Nadu, with a ₹400 crore investment

Updated On: 12 Feb 2026 | 5:50 PM IST

India's CPI 2024 base halves back series index, inflation unchanged

Shift to CPI 2024 base sharply lowers headline index levels in back series, but inflation rate remains identical across rural and urban segments

Updated On: 12 Feb 2026 | 5:47 PM IST