Monetary Policy Of India

Monetary Policy is the process by which authority of country .In India RBI will authorize the monetary policy monetary policy can control the prices that means it maintains the price stability.Usually RBI calculate the monetary policy Bimonthly .
RBI maintains the price stability by using monetary policy instruments these are
1)Repo Rate :RBI gives Loans to commercial bank at the certain rate of interest that is Repo Rate
2)Reverse Reporate :RBI takes the Loans from commercial banks at the certain rate of interest is Reverse Repo Rate
3)CRR :Cash Reserve Ratio means every bank should maintain the Reserve Cash some percentage of Deposits
4)Statutory Liquidity Ratio (SLR) : It means every bank should maintain the liquid cash inthe form of bonds and gold

5)Bank Rate :Rbi gives the loans to commercial banks on the long term basis

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