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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

Maharashtra debt to rise 11% to touch ₹9.3 trillion in FY26: Eco Survey

According to the survey, domestic debt alone is projected at ₹7,39,859 crore, accounting for 79.4 per cent of the total outstanding debt of the state

Updated On: 07 Mar 2026 | 9:58 PM IST

Judiciary must protect environment but not hinder development: CJI

The jurist was here for the inauguration of a refurbished library in memory of Justice Kuldip Singh, often hailed as the 'Green Judge' of the Supreme Court

Updated On: 07 Mar 2026 | 9:50 PM IST

US strikes on Iran spark concerns over shrinking weapons stockpiles

The Trump administration has repeatedly said American forces have all of the weapons they need to fight the Iran war, now in its second week

Updated On: 07 Mar 2026 | 9:40 PM IST

Go Digit gets GST demand notice of about ₹170 crore for FY18-FY22

The company is in the process of evaluating the legal advice on the implications and would file an appeal, it said

Updated On: 07 Mar 2026 | 9:30 PM IST

Change inevitable in West Bengal after assembly polls: Ashwini Vaishnaw

Lambasting the TMC, he said those who had won the trust of the people of West Bengal some years ago have now launched a vicious attack on the state's pride

Updated On: 07 Mar 2026 | 9:24 PM IST

RBI removes NOFHC requirement for AU SFB's transition to Universal Bank

Instead, the regulator now said the NOFHC structure will be required only if the bank or its promoter proposes to establish any group entity in the future

Updated On: 07 Mar 2026 | 9:21 PM IST

Lakshya beats Canada's Victor Lai to enter All England Open final

The 12th ranked Sen beat world number 16 Lai 21-16 18-21 21-15 in the match that lasted one hour and 37 minutes

Updated On: 07 Mar 2026 | 9:14 PM IST

PM Modi accuses Bengal govt of insulting President Murmu during state visit

The prime minister said that the pain and anguish expressed by the President, who herself hails from a tribal community, has caused immense sadness in the minds of the people of India

Updated On: 07 Mar 2026 | 8:45 PM IST

Israeli minister warns Lebanon to disarm Hezbollah or face 'heavy price'

Lebanese militant group Hezbollah on Saturday told residents of a northern Israeli city close to the border with Lebanon to evacuate and head south

Updated On: 07 Mar 2026 | 8:39 PM IST

Oil and gas prices rapidly rise as Iran war shows no signs of letting up

The disruption and damage to key oil and gas facilities in the Middle East has led to an interruption in the supply of oil and gas

Updated On: 07 Mar 2026 | 8:36 PM IST

Rapper-turned-politician Balendra Shah is Nepal's rising star in politics

The 35-year-old engineer was a popular choice to lead the interim government after Gen Z youths toppled the K P Sharma Oli-led coalition government in September last year

Updated On: 07 Mar 2026 | 8:35 PM IST

CBSE postpones Class 12 board exams in West Asia amid Iran-Israel war

Previously, the board had postponed the exam scheduled on March 2, March 5 and March 7 in the region

Updated On: 07 Mar 2026 | 8:08 PM IST

Traffic restrictions likely in north Delhi on Sunday due to DDA's event

Several housing projects and sections of the Delhi Metro will be inaugurated during the event, according to the Delhi Traffic Police

Updated On: 07 Mar 2026 | 8:07 PM IST

Sri Lanka to repatriate bodies of Iranian sailors killed in US strike

Sri Lanka said on Wednesday it had recovered 84 bodies of Iranian sailors after the US submarine attack sank the Iranian frigate IRIS Dena off Galle on the island's southern coast

Updated On: 07 Mar 2026 | 8:03 PM IST

Pakistan, Saudi discuss security measures after Iran strikes in Gulf

Field Marshal Asim Munir met Khalid bin Salman in Saudi Arabia, according to a statement from the Pakistan military's press wing on Saturday

Updated On: 07 Mar 2026 | 7:40 PM IST

TVK chief Vijay announces slew of freebies for women, including 8 gm gold

In poll-bound Tamil Nadu, Vijay announced several welfare promises for women a day ahead of International Women's Day

Updated On: 07 Mar 2026 | 7:36 PM IST

RSP's Balendra 'Balen' Shah defeats Oli, set to form next govt in Nepal

Balen, 35, secured 68,348 votes against 74-year-old Oli's 18,734, the Election Commission (EC) said

Updated On: 07 Mar 2026 | 7:35 PM IST

US FDA vaccines chief Vinay Prasad set to leave his post next month

FDA Commissioner Marty Makary thanked Prasad for his service in a post on X late Friday, noting his division hit a record number of approvals in December

Updated On: 07 Mar 2026 | 7:11 PM IST

Indian Oil books crude cargoes loading from Red Sea port of Yanbu: Report

The US-Israel war with Iran has disrupted oil and natural gas exports from the Middle East, while top oil exporter Saudi Arabia is increasing shipments from the Red Sea as an alternative

Updated On: 07 Mar 2026 | 6:29 PM IST

At least 41 killed, 40 wounded in Israeli airstrikes in eastern Lebanon

The Iranian-backed militant group Hezbollah said its fighters clashed with an Israeli force that landed late Friday in the mountains of eastern Lebanon

Updated On: 07 Mar 2026 | 6:02 PM IST