Q168
Indian EconomyMoney, Banking & Financial Institutions
The monetary policy of India is framed by -
- a.The Government of India
- b.The Reserve Bank of India
- c.The State Bank of India
- d.None of the above
Answer: (B) The Reserve Bank of India
The Reserve Bank of India (RBI) formulates and implements India's monetary policy. It uses instruments like the repo rate, reverse repo rate, CRR, and SLR to control money supply, inflation, and credit availability. The Government sets fiscal policy; the SBI is a commercial bank, not a policy-making body.