Monetary Policy

Objectives

Presented By:
Tanvi Gupta
Presentation Scheme

• Meaning of monetary policy

• Objectives of monetary policy
• Types of monetary policy
• Monetary policy tools
What is monetary Policy?

• The part of the economic policy which regulates

the level of money in the economy in order to
regulate inflation, improve balance of payments,
increase gross national product etc.

• RBI reserves its right to alter monetary policy to

time to time depending upon state of economy.
Objectives of monetary policy

• Price stability

• Controlling inflation

• Encouraging growth
Types of monetary policies

•Expansionary
• Contractionary
Monetary policy tools

• Bank Rate-The rate at which RBI extends credit

to commercial Banks
• CRR-The percentage of bank’s deposits which
they must keep as cash with RBI.
• SLR- Commercial Banks has to keep a portion
of total deposits with itself in liquid assets.
• Open Market Operations- Buying and selling of
various credit instruments and foreign currencies
or commodities.
Thank you for your
attention!