Monetary policy of the Reserve Bank of India

Sun, 17 May 2026 00:00:00 +0000

Monetary policy of the Reserve Bank of India (RBI) refers to the framework by which India’s central bank, the Reserve Bank of India , manages the supply of money and the cost of credit in the Indian economy. The principal objective of Indian monetary policy, as defined under the Reserve Bank of India Act, 1934 (as amended by the Finance Act, 2016), is to maintain price stability while keeping in mind the objective of growth. The framework operates through the Monetary Policy Committee (MPC), a six-member committee that sets the policy rate (the repo rate) through bi-monthly meetings. The MPC’s decisions transmit through the Indian banking system, affecting interest rates, credit availability, currency value, and the broader economy.

Monetary Policy on WebNotes

Monetary policy of the Reserve Bank of India