The Function of Monetary Policy in Developing Countries
Author : Hemraj Garg and Dr. Sagar Sanwariya
Abstract :
The Reserve Bank of India is the country's central bank, in charge of regulating banking and financial activity in the economy. It is responsible for developing and overseeing the monetary policy framework, including the use of suitable monetary instruments to fulfil the objectives outlined in the Reserve Bank of India Act, 1934 ("Act"). A monetary policy, as defined by the Act, is a policy aimed at maintaining price stability while promoting simultaneous growth in the Indian economy. This research article aims to gain a better knowledge of the monetary policy framework as it applies in India by researching the evolution of the objectives of monetary policy and its scheme, with a focus on the function of instruments.
Keywords :
Reserve bank of India, RBI, monetary policy, monetary policy framework, instruments, covid-19
