With reference to the Indian Economy, the term "Sterilisation" refers to
1
process by which the RBI takes away money from the banking system to neutralize the fresh money that enters the system.
2
sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
3
unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.
4
Borrowing by the government from the Central Bank to meet the contingent needs.