摘要：The Reserve Bank of India is the main monetary authority of the India. It formulates implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to productive sectors. Objectives are maintaining price stability and ensuring adequate flow of credit to productive sectors. The institution is also the regulator and supervisor of the financial system and prescribes broad parameters of banking operations within which the country's banking and financial system functions. The national economy depends on the public sector and the central bank promotes an expansive monetary policy to push the private sector since the financial market reforms of the 1990s. Nowadays Reserve Bank of India is facing challenges while formulating monetary policy. On one hand it has to promote the credit creation in order to keep continue the flow of capital throughout the country and on the other hand it has to contain the inflation. The present research paper deals with the monetary policy of India and issues related to it.
