Hayat Ashraf

Monetary policy in the Indian economy is formulated and implemented by the Reserve Bank of India (RBI), which is the central bank of the country. The primary objective of monetary policy is to maintain price stability, control inflation, and support sustainable economic growth. Here's an overview of the monetary policy in the Indian economy: 1. Policy Rates:    a. Repo Rate: The repo rate is the rate at which the RBI lends short-term funds to commercial banks. Changes in the repo rate influence borrowing costs and liquidity conditions in the banking system.    b. Reverse Repo Rate: The reverse repo rate is the rate at which the RBI borrows funds from commercial banks. It acts as a tool to manage excess liquidity in the banking system. 2. Cash Reserve Ratio (CRR):    a. CRR is the portion of a bank's deposits that it must maintain with the RBI in cash reserves. It helps regulate the liquidity in the banking system and influences the amount of funds available...