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Which Indian organization is primarily responsible for setting interest rates?
Question

Which Indian organization is primarily responsible for setting interest rates?

A.

SEBI

B.

NABARD

C.

RBI

D.

IRDA

Correct option is C

The Reserve Bank of India (RBI) is the central bank of India and is primarily responsible for setting interest rates in the country. Through its Monetary Policy Committee (MPC), the RBI sets key interest rates like the repo rate, which influences the lending and borrowing rates across the banking system. These interest rates are crucial tools used by the RBI to manage inflation, control liquidity, and stabilize the currency.

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