The document discusses India's monetary policy, which is controlled by the Reserve Bank of India (RBI). The RBI announces monetary policy twice per year to regulate price stability in the economy. Monetary policy aims to influence economic growth, employment, credit flows, and price stability through tools like bank rates, open market operations, cash reserve ratios, and statutory liquidity ratios. It can impact consumption, investment, exports and imports. Limitations include non-monetized sectors, non-banking institutions, and lack of coordination with fiscal policy. The current monetary policy rates in India are outlined.

1. Monetary Policy

2. CD Deshmukh
The First Indian Governor of
Reserve Bank of India (RBI)
Dr. D. Subbarao
Present Governer of
Present Governer of

3. Monetary policy- Meaning
The part of the economic policy which regulates the level of
money in the economy in order to achieve certain
objectives.
In INDIA,RBI controls the monetary policy. It is announced
twice a year, through which RBI,regulate the price stability
for the economy.
1.slack season policy April-September
2.Busy season policy October-March

4. Importance of Monetary Policy
Gross National Product (GNP) = C + I + G + X
Where: C = Private Consumption expenditure
I = Private Investment Expenditure
G = Government Expenditure
X = Net Exports
C, I, X can be influenced by the monetary policy which
can also influence the private consumption and
investment spending and exports and imports.

5. ∫Economic Growth
∫Full Employment
∫Flow of credit in all sectors of economy
∫Price Stability
OBJECTIVES

6. Exchange rate stability
Equilibrium in balance of payments
Greater equality in the distribution
of income and wealth

8.  Bank rate
 Open market operations
 Cash reserve ratio (CRR)
 Statutory liquidity ratio (SLR)
Quantitative measures

9. Ω Rationing of credit
Ω Moral Suasion
Ω Direct Action
Ω Regulation in consumer credit
Ω Changes in margin requirements
Qualitative Measures

11. IF :
Bank Rate
Bank Rate

12. CRR/SLR
CRR/SLR

13. LIMITATION OF MONETARY POLICY
‡ Non-monetized sector
‡ Non-banking financial institution
‡ Unorganised financial markets

14. ¤ Higher liquidity
¤ Non-appearance of money
¤ Time tag
¤ Lack of coordination between
monetary and fiscal policy

15. Monetary Policy Of 2011-2012

16. • 2.9%Inflation
• 9.50%Bank Rate
• 4.75%CRR
• 24%SLR
• 8.50%Repo Rate
• 7.50%Reverse Repo Rate
• 11.5 to 12%PLR
• 51.27%Re/$
Current Rates

17. Conclusion
As articulated in the June 16th policy
statement, RBI will continue to maintain
liquidity conditions such that neither surplus
liquidity dilutes the monetary policy stance
nor large deficit chokes off fund flows to
productive sectors of the economy. The
market at present has discounted the rise of
25 bps in interest rates but global concerns
still continue to weigh on the market.

18. http://www.rbi.org.in/scripts/NotificationUser.asp
x?Id=6376
http://www.rbi.org.in/scripts/NotificationUser.asp
x?Id=5 602
http://stockthoughts.wordpress.com/2008/04/05/
what-is-cash-reserve-ratio-and-how-will-the-crr-
hike-impact-you/
http://www.banknetindia.com/
http://www.investopedia.com/terms/m/monetary
policy.asp
www.ask.com/Economics+Definitions
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19. Amrita Hemrajani (17)
Pearlene Jasavala (24)
Niharika Kulkarni (30)
Khyati Nandu (38)
Sanaya Patel (40)
Krishma Sandesra (42)
Vatsal Shah (50)