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