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Monetary policy

Monetary policy of a country broadly aims at regulating the money supply in the country. Regulation supply in the Country has its affect On interest Structure credit structure, investment structure, prices, flow of foreign exchange etc. The policy is prepared by the central bank of the country and implemented mainly through the commercial banks. Reserve bank of India is the Central Bank in India. State Bank of India, Punjab National Bank, Canara Bank, Union Bank of India, UTI Bank, Times Bank etc. are the examples of Commercial Banks. In practice nearly all the financial institutions bankIng or nonbanking are involved in the implementation of the monetary policy, directly or indirectly.

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