Who among the following is entrusted with the responsibility of conducting monetary policy in India?
- AOption (a)
State Bank of India
- BOption (b)
Central Government
- COption (c)
Finance Commission
- DOption (d)
Reserve Bank of India
View answer & explanationHide answer & explanation
Correct answer
Reserve Bank of India
Why this answer is correct
The correct answer is the Reserve Bank of India.
Key Points
- The Monetary Policy Report is issued by the Monetary Policy Committee of RBI.
- The main aim of monetary policy is to maintain price stability while keeping in mind the objective of growth as price stability is a fundamental precondition for sustainable economic growth.
- The MPC decides the policy interest rate required to achieve the inflation target.
- Reserve Bank of India:
- It is India's central bank and regulatory body under the jurisdiction of the Ministry of Finance Government of India.
- It is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.
- HQ: Mumbai
- Governor: Sanjay Malhotra.
Additional Information
- State Bank of India (as of Jan 2022)
- State Bank of India is an Indian multinational, public sector banking and financial services statutory body.
- SBI is the 43rd largest bank in the world and ranked 236th in the Fortune Global 500 list of the world's biggest corporations of 2019.
- HQ: Mumbai, Maharashtra
- Chairman: Dinesh Kumar Khara
- Finance Commission (as of Jan 2022)
- The Finance Commission is a Constitutionally mandated body that is at the centre of fiscal federalism.
- Article 280 of the Constitution of India provides for a Finance Commission as a quasi-judicial body.
- It is constituted by the President of India every fifth year or at such an earlier time as he considers necessary.
- N.K. Singh is the chairman of the 15th Finance Commission of India.
- Dr. Arvind Panagariya is the Chairman of the 16ᵗʰ Finance Commission of India.