The monetary policy in India is formulated by the _____________.

Correct option is B

• The primary objective of the monetary policy is to regulate the supply of money in the economy and control inflation, ensuring economic stability.
• The RBI uses various tools like repo rate, reverse repo rate, and cash reserve ratio (CRR) to manage the liquidity and credit in the economy.

Information booster:

• Established: 1st April 1935 (under the RBI Act, 1934)
• Headquarters: Mumbai, Maharashtra
• Governor: Shaktikanta Das (current as of 2024)
• Ownership: Fully owned by the Government of India (since 1949 nationalization)
• Subsidiaries: NABARD, NHB, DICGC, BRBNMPL

• Currency Issuance & Management
• Foreign Exchange Regulation
• Financial Stability & Banking Regulation
• Inflation Control & Economic Growth Support

•  Industrial Finance Corporation of India (IFCI): IFCI is an institution that provides financial support to industrial sectors.

•  Industrial Development Bank of India (IDBI): IDBI focuses on providing financial assistance to industries .