19 February 2013


Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.In India, the central monetary authority is the Reserve Bank of India . is so designed as to maintain the price stability in the economy. Other objectives of the monetary policy of India, as stated by RBI, are:...
Price Stability
Controlled Expansion Of Bank Credit
Promotion of Fixed Investment
Restriction of Inventories
Promotion of Exports and Food Procurement Operations
Desired Distribution of Credit
Equitable Distribution of Credit
To Promote Efficiency
Reducing the Rigidity


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