The term “tapering” has been going around for quite sometime in the financial market. In last few weeks, this term of tapering has played havoc with Indian financial markets and made even our regulator, Reserve Bank of India, nervous. The financial pundits even in India will be closely watching Federal Reserve Board Chairman Ben Bernanke when he testify before the Senate Banking, Housing and Urban Affairs Committee hearing on “The Semiannual Monetary Policy Report to the Congress” at Capital Hill in Washington on 18th July, 2013 For the benefit of our readers, I am giving below some details which I am sure will make the subject easier for bankers and students and they will be able to appreciate the term better.