The document discusses monetary policy and the role of central banks. It outlines the objectives of monetary policy as price stability, economic growth, and financial stability. The Reserve Bank of India announces monetary policy annually and conducts quarterly reviews to promote growth and ensure price stability. Key tools of monetary policy include cash reserve ratio, statutory liquidity ratio, repo rate, and reverse repo rate.

1. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
1

2. Monetary policy & role played
by central bank.
Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
2

3. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
3

4. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
4

5. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
5

6. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET
(MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
6

7. Monetary Policy
Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
7

8. Objectives of monetary policy
Price stability
 Flow of credit
 Economic growth
 Financial stability
 Interest rates
 Credit delivery
 Financial inclusion
 Institutional developments

Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
8

9. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
9

10. The Governor of the Reserve Bank
announces the Monetary Policy in April
every year.
 Followed by three quarterly reviews.
 The overall goal is to promote economic
growth and ensure price stability.

Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
10

11. Monetary Policy Framework
Operating Target
 M3 as a policy target with a multiple
indicators approach.
Monetary Policy Instruments –
 Cash Reserve Ratio
 Statutory Liquidity Ratio
 Repo rate
 Reverse repo rate
Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
11

12. Review
Macroeconomic and monetary
developments
 Action taken and the status of past policy.

Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
12

13. Institutional Mechanism for
Monetary Policy-making
Financial Markets Committee (FMC)
 Monetary Policy Strategy Group
 Technical Advisory Committee (TAC)
on Monetary Policy
 Pre-Policy Consultation Meetings
 Resource Management Discussions

Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
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14. Monetary Policy Department
The core activities of the Department
include:
 Preparing the Governor’s monetary policy
statements and its quarterly reviews.
 Formulating policy on interest rates of the
banking sector.
 Making projections on growth, inflation
and monetary aggregates.
 Authorizing food credit limits.
 Monitoring maintenance of CRR and
SLR.
Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
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15. Help yourself
Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET (MANAGEMENT),
Ph.D (WIP), G.D.C &A, NCMP.
15

16. Monetary Policy
YOGESH NAMDEO INGLE.MBA
(FINANCE), NET
(MANAGEMENT), Ph.D (WIP), G.D.C
&A, NCMP.
16