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Monetary Policy 009

Monetary policy is an important economic management tool in India where the Reserve Bank of India (RBI) controls the supply of money and bank credit. The RBI ensures legitimate credit needs are met while preventing unproductive and speculative uses of credit through its policy of controlled expansion of credit.

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himanshu
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33 views

Monetary Policy 009

Monetary policy is an important economic management tool in India where the Reserve Bank of India (RBI) controls the supply of money and bank credit. The RBI ensures legitimate credit needs are met while preventing unproductive and speculative uses of credit through its policy of controlled expansion of credit.

Uploaded by

himanshu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Monetary policy / monetary management is regarded as an important tool of

economic management in India. RBI controls the supply of money and bank
credit. The Central bank has the duty to see that legitimate credit
requirements are met and at the same credit is not used for unproductive and
speculative purposes. RBI rightly calls its credit policy as one of controlled
expansion.

“Monetary policy refers to the use of instruments under the control


of the central bank to regulate the availability, cost and use of
money and credit.”

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