Which among the following is/are the Nodal Agency for implementing the Monetary Policy?
(i) State Bank of India
(ii) Union Bank
(iii) Reserve Bank of India

Correct option is D

The Reserve Bank of India (RBI) is the nodal agency responsible for implementing the monetary policy in India. The RBI controls the supply of money in the economy, regulates interest rates, and maintains financial stability by managing inflation and liquidity.
· The monetary policy framework is crucial for achieving macroeconomic stability, including controlling inflation and ensuring sufficient liquidity in the banking system.
Important Key Points:
1. The Reserve Bank of India (RBI) is the central bank and the primary agency for implementing monetary policy.
2. Monetary policy tools include repo rates, reverse repo rates, and open market operations.
3. The objective is to control inflation, manage exchange rates, and stabilize the financial system.
4. The RBI’s role is critical in ensuring the overall economic health of the country.
Information Booster:
· Monetary Policy: Refers to the actions undertaken by a central bank to control the money supply and interest rates.
· Reserve Bank of India (RBI): Established in 1935, it is India's central banking institution, which regulates the monetary and financial system.