Monetary Policy and Contemporary Status

Dr Suhasini Parashar

Department of Business Administration Maharaja Surajmal Institute, Delhi, India

63-77 Vol: 11, Issue: 3, 2021

Receiving Date: 2021-06-12
Acceptance Date: 2021-06-28
Publication Date: 2021-07-12

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Abstract

Monetary policy , a process by which the monetary authority of a country, generally the central
bank ,Reserve Bank of India (RBI), controls the supply of money in the economy by its control
over interest rates so as to maintain price stability and achieve high economic growth . RBI the
apex institute of India which monitors and regulates the monetary policy of the country,
stabilize the price by controlling inflation . Monetary operations involve monetary techniques
which operate on monetary magnitudes such as money supply, interest rates and availability
of credit aimed to maintain price stability, stable exchange rate, healthy balance of payment ,
financial stability, and economic growth. The Government of India, in consultation with RBI,
notified the Inflation Target in the Gazette of India Extraordinary dated 5 August 2016 for the
period beginning from the date of publication of the notification and ending on the March 31,
2021 as 4% . At the same time , lower and upper tolerance levels were notified to be 2% and 6%
respectively. Inflation rate in 2020 is 6.2% . RBI Governor Shaktikanta Das said the Monetary
Policy Committee (MPC) kept its estimate for economic growth unchanged at 10.5 per cent for
the current fiscal. Central bank to maintain accommodative monetary policy stance to support
growth, keep inflation at targeted level .

Keywords: Money; Inflation; Liquidity

References

Indian Economy , Gaurav Dutt & A. Mahajan ,2021,S.Chand.
Indian Economy ,Environment and Policy,I.C.Dhingra , 2018,Sultan Chand & Sons.
Indian Economy , V.K. Mishra & S.K.Puri,2020,Himalaya Publishing .
www.indianeconomy.com
www.capitalmarket.com
www.financialmarket.com
www.moneyandbanking .com
www.moneycontrol.com
www.rbi.org.in.com

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International Journal of Transformations in Business Management

Abstract