Which of the following indicators is/are used to observe the monetary transmission mechanism in the economy? 1. Weighted average lending rate 2. Weighted average domestic term deposit rate 3. 1-year median MCLR 4. SDF rate

The Reserve Bank of India monitors monetary policy transmission to the banking system using indicators such as the Weighted Average Lending Rate (WALR) on fresh and outstanding rupee loans, the Weighted Average Domestic Term Deposit Rate (WADTDR), and the 1-year median Marginal Cost of Funds-Based Lending Rate (MCLR). These reflect how changes in the policy repo rate pass through to actual lending and deposit rates in the economy. The SDF (Standing Deposit Facility) rate is itself a policy tool (the floor of the LAF corridor), not an indicator used to observe transmission. Hence statements 1, 2 and 3 are correct.