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Who controls the supply of money in India?

The Reserve Bank of India (RBI) controls the money supply in India. The RBI has control over the monetary policy of India. It controls the interest rates, the reserves to be maintained with the banks to control the money circulation in the economy. You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.

RBI uses different instruments to control the monetary policy.

Further readings:

  1. Monetary Policy Committee (MPC) – Structure, Objectives UPSC Notes
  2. Monetary Policy – Objectives, Role, Instruments

Related Links

Financial Market – Difference Between Money Market & Capital Market

Black Money: Definition, Sources & Measures to Curb Black Money

Demand and Supply – Demand Curve, Supply Curve & Market Equilibrium (UPSC Economy)

Statutory Liquidity Ratio (SLR) – Definition, Objective & Impact

Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes]

Previous Years Economics Mains Questions 

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