Presentation on "Monetary policy of India"

1. BHARATIYA MAHAVIDYALAYA,
Amravati.
(Art’s, Commerce & Science)
Sub :- Banking and Insurance
(Monetary Policy)
Presented By :-
Shubham P.
Raut.

3. MONETARY POLICY
Introduction :
Monterey policy is related to the financial
system of country. The economic development of country
depend upon the smooth and successful working and
conduct of monetary policy. Monetary policy means the
management of inflation and deflation by the central bank
of the country. In simple words monetary policy means the
credit policy adopted by the central bank of the country.
Monetary policy is that policy which can
expansion and contraction of the value of money. It is
clear that there is direct relation of monetary policy to the
control and the regulation of money supply. The monetary
policy included all the financial and non-financial decision.

4. Monetary policy are related
with the Economic policy of a country.
The objective of the monetary policy and
Economic policy are not different. They
are the same. This the reason that
whenever any changes are made in the
Economic Policy of a country, the
objective of the monetary policies are
also changed.

5. Objective of Monetary Policy
 Full employment :- Full employment objective
as the Main objective of a monetary policy. The
objective of the monetary policy to make maximum
utilization of the available resources in the country.
 Economic Development :- Economist suggested
that economic development should be main
objective of the monetary policy. Monetary policy
should be increase the rate of economic
development.

6.  Price stability objective :- There is to much
price fluctuation in the price of commodity in
the year number of the time change the price
of commodity. There is required stability in the
price. Some economist suggested that price
stability is the best objective of monetary policy.
 Exchange rate stabilithy :- According to the
some economist the objective of monetary
policy should be maintain stability in the
exchange rate. Such as the rate of Dollar, Yen
etc. In order to achieve monetary policy should
all the forces which create stability in exchange
rate.

7. Limitations of Monetary Policy
 Co-operation of the commercial bank :- The
commercial bank is the poor countries does not
give full co-operation to the central bank due to
various reasons. The main reasons are limited
means of the central bank.
 Thank uyou
 Means of commercial banks :- Sometimes the
means of commercial bank in the developing
countries are plenty. If commercial bank earn huge
profit and their deposits very large they donot
except any help from central bank. In such
condition central banks are help less in the
effective implementation of their monetary policy.

8.  Limited working areas of central bank :-
In the poor country central bank are newly
established. They are in primary stage. Thus
the working area of central bank is limited.
So the monetary policy adopted by such bank
is not effective.`

9. Thank you