In India which one of the following is responsible for maintaining for price stability by controlling inflation? [2022]

In India which one of the following is responsible for maintaining for price stability by controlling inflation?

Department of Consumer Affairs
Expenditure Management Commission
Financial Stability and Development Council
Reserve Bank of India

Explanation

Option (d) is correct

Monetary policy is the process by which the monetary authority of a country (RBI) controls the money supply in the economy for the purpose of achieving GDP growth and price stability. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, of 1934. The main goal of monetary policy is to ensure price stability while also promoting economic growth. Having stable prices is crucial for sustainable growth.

An infographic explaining inflation-targeting framework, including its definition, pros and cons, history, successes, challenges, and policy transmission in India. It features color-coded sections with icons, bullet points, and data such as inflation rates, policy milestones from 1960s to post-2014, and key challenges like spillover effects and growth dilemmas.