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UPSC · Revision notes · General
Monetary Policy Rbi
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General notes
RBI & monetary policy toolkit
Mandate (simplified)
- Price stability with growth (flexible inflation targeting framework with Government)
- Issuer of currency; banker to Government and banks; regulator/supervisor of banks
Instruments (memorise with direction)
| Tool | Tightening | Easing |
|---|
| Repo rate | ↑ | ↓ |
| Reverse repo / SDF corridor | context-dependent | context-dependent |
| CRR / SLR | ↑ liquidity mop | ↓ inject |
| OMOs | sell securities | buy securities |
PYQ focus
- MPC composition and voting
- Inflation target / band
- Difference between monetary and fiscal policy
Summary
Link tools → liquidity/inflation. Pair with Budget/fiscal notes for GS-III coherence.
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