==Main Note - [Monetary Policy](Monetary%20Policy.md)== 1. [Monetary policy](https://rbi.org.in/scripts/PublicationsView.aspx?Id=18086#:~:text=Monetary%20policy%20refers%20to%20the%20use%20of%20monetary%20instruments%20under%20the%20control%20of%20the%20central%20bank%20to%20influence%20variables%2C%20such%20as%20interest%20rates%2C%20money%20supply%20and%20availability%20of%20credit%2C%20with%20a%20view%20to%20achieving%20the%20objectives%20of%20the%20policy.) refers to the use of monetary instruments under the control of the central bank to influence variables, such as ==interest rates, money supply and availability of credit, with a view to achieving the objectives of the policy.== ^bfae20 1. It can have a single objective of price stability or multiple objectives. 2.  For countries, which have adopted inflation targeting framework, price stability is the core objective 2. Over time, the role of monetary policy in India evolved to maintaining price stability, ensuring adequate flow of credit to the productive sectors of the economy for economic growth, and financial stability. > [!quote] > *Central banks derive their objectives from their respective mandates. Monetary policy could have either a single objective of price stability or multiple objectives besides price stability. In the literature and in practice, price stability is considered as the dominant objective of monetary policy.* > -. Deepak Mohanty. Mar 02, 2010. ==Monetary Policy Framework in India: Experience with Multiple-Indicators Approach.== (Speech by Shri Deepak Mohanty, Executive Director, Reserve Bank of India, delivered at the Conference of the Orissa Economic Association in Baripada, Orissa, on 21st February 2010. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=481) ### Prior to 1980s 1. There were not enough monetary instruments along with lack of depth. 2. Owing to limited participation, money market liquidity was highly skewed, characterised by a few dominant lenders and a large number of chronic borrowers. 3. In the presence of ad hoc Treasury Bills with fixed interest rate under the system of automatic monetisation, Treasury Bills could not emerge as a short-term money market instrument. 4. Administered (not market determined) interest rates and captive investor base (due to very high SLR) in government securities market further impeded open market operations as an effective instrument of monetary control. 5. The prevalence of interest rate regulations along with restrictions on participation prohibited the integration of different market segments which is a prerequisite for effective monetary policy transmission. 6. Major tools of policy - credit planning and selective credit controls and eventually on monetary targeting (since 1988) through quantitative instruments. ## 1985 to 1998 - Monetary targeting 1. [1985](RBI_Group-Committee_19850410_Report%20of%20the%20Committee%20to%20Review%20the%20Working%20of%20the%20Monetary%20System_Chairman-Sukhamoy%20Chakravarty.pdf.pdf) - The Committee to Review the Working of the Monetary System, under the chairmanship of Prof. Sukhamoy Chakravarty, set up by the Reserve Bank, recommended: 1. that the monetary policy should focus on price stability as its primary objective. It proposed "monetary targeting" with feedback, which targeted the growth of money supply (M3) to align with real GDP growth and a tolerable level of inflation. In other words, a Monetary targeting framework to target an acceptable order of inflation in line with desired output growth. 2. limiting the automatic monetization of the budget deficit, that is the printing of money to finance government spending, with the help of a formal agreement between the RBI and the Government. 1. In the 1980s, fiscal dominance became as reflected in automatic monetisation of budget deficit through ad hoc treasury bills and progressive increase in SLR by 1985. 2. At the same time, inflationary impact of deficit financing led to the tightening of monetary policy – both the CRR and Bank Rate were raised significantly. 3. the existing definition of "budgetary deficit" did not fully capture the inflationary impact of government borrowing, prompting the introduction of the concept of the fiscal deficit (which included market borrowings and other liabilities) to better measure the government's draft on credit. 4. more flexible interest rates on government securities to discourage over-monetization. ### Monetary targeting 1. The experience of monetary policy in dealing with the objectives of containing inflation and promoting growth eventually led to adoption of monetary targeting as a formal monetary policy framework in 1985 on the recommendations of the Chakravarty Committee. 2. In this framework, with the objective of controlling inflation through limiting monetary expansion, reserve money was used as operating target and broad money ($M_3$) as intermediate target. 3. The targeted growth in money supply was based on expected real GDP growth and a tolerable level of inflation. 4. This approach was flexible as it allowed for feedback effects. 5. CRR was used as the primary instrument for monetary control. 6. But due to continued fiscal dominance, both SLR and CRR reached their peak levels by late 1980 (1990). 7. **Experience with Monetary Targeting Approach** 1. Deepak Mohanty's [Speech](RBI_Speeches_20100302_Monetary%20Policy%20Framework%20in%20India-%20Experience%20with%20Multiple-Indicators%20Approach_Deepak%20Mohanty.pdf#page=10&selection=65,0,65,43) on Mar 02, 2010 titled *Monetary Policy Framework in India: Experience with Multiple-Indicators Approach*. 2. Mohanty and Mitra (1999), “Experience with Monetary Targeting in India”, _Economic and Political Weekly,_ January 16-23, pp 123-132. ### Vaghul Group, 1987 1. The Committee to Review the Working of the Monetary System, under the chairmanship of Shri Sukhamoy Chakravarty, was the first to make ==several recommendations in 1985 for the development of money market.== 2. [1987](RBI_Group-Committee_198701_Report%20of%20the%20Working%20Group%20on%20Money%20Market%201987_Chairman-N.%20Vaghul.pdf) - As a follow-up, the RBI set up a Working Group on Money Market under the Chairmanship of Shri N. Vaghul, which submitted its Report in January 1987. 3. Based on the recommendations, the RBI initiated a number of measures to widen and deepen the money market. 4. The main initiatives were: [^6] 1. In order to impart liquidity to money market instruments and help the development of secondary market in such instruments, the Discount and Finance House of India (DFHI) was set up as a money market institution jointly by the Reserve Bank of India, public sector banks and financial institutions in 1988. The Reserve Bank has since divested its shareholding and is only a minority shareholder now. 2. To increase the range of money market instruments, Commercial Paper, Certificates of Deposit, and Interbank Participation Certificates were introduced in 1988-89. There is a wide range of instruments now as will be explained later. 3. Third, to enable price discovery, the interest rate ceiling on call money was freed in stages from October 1988. 4. As a first step, operations of DFHI in the call/notice money market were freed from the interest rate ceiling in 1988 and in May 1989, the interest rate ceiling was completely withdrawn, for all operators in the call/notice money market and on interbank term money, rediscounting of commercial bills and Interbank Participation Certificates without risk. 5. By Feb, 1999 - all the money market interest rates were by and large determined by market forces. ## 1990s 1. High government spending worsened the fiscal situation, leading to higher imports and inflation. Along with this, there were adverse global shocks like the gulf war and disintegration of the Soviet Union (end of Rupee trade) that led to deterioration of external balance position and collapse in domestic growth in 1991-92. 2. 1991 - India witnessed the balance of payments [crisis](https://www.imf.org/external/pubs/ft/staffp/2002/03/pdf/cerra.pdf), also known as [[FinMin_1991_2 The Payments Crisis.pdf|payments crisis]], but a sovereign default was prevented. 3. The resultant balance of payments crisis triggered large scale structural reforms, financial sector liberalization and opening up of the economy to achieve sustainable growth with price stability. 4. [Exchange Rate Policy in 1990s](Exchange%20Rate%20Policy.md#1990s) - At the same time, there was a shift from fixed exchange rate regime to a market determined exchange rate system in 1993. 5. **April 1997** 1. At the same time, there was a notable shift towards market-based financing for both the government and the private sector. 2. Automatic monetisation through ad hoc [Treasury Bills (T-Bills)](Treasury%20Bills%20(T-Bills).md) was abolished in 1997 and replaced with a system of ways and means advances (WMAs). 3. During this period, average domestic growth rate was 5.6 per cent and average WPI-based inflation was 8.1 per cent. 6. ==In the wake of trade and financial sector reforms and the consequent rise in foreign capital flows and financial innovations, the assumption of stability in money demand function as well as efficacy of broad money as intermediate target came under question.== 7. **Deregulation of interest rates -** By 1997, a phase-wise [deregulation of interest rates](Deregulation%20of%20Interest%20Rates%20on%20Deposits.md) on deposits began in India. ### 1998 - The multiple indicators approach 1. The Reserve Bank had formally adopted a “multiple indicators approach” in April 1998 (to 2016), during the tenure of Governor Dr. Bimal Jalan, with a greater emphasis on rate channels for monetary policy formulation. 2. It replaced the pure monetary targeting framework to better align policy with liberalization, using data on inflation, growth, credit, and external sectors 3. January 1, 1998 - The Credit Planning Cell, responsible for formulation of monetary policy and other policy initiatives was renamed as the Monetary Policy Department (MPD). >The foundation for the reform of the monetary and financial system was laid by the Committee to Review the Working of the Monetary System (Chakravarty Committee, 1985) and the Working Group on the Money Market (Vaghul Group, 1987). 4. Deepak Mohanty. Mar 02, 2010 .==Monetary Policy Framework in India: Experience with Multiple-Indicators Approach.== (Speech by Shri Deepak Mohanty, Executive Director, Reserve Bank of India, delivered at the Conference of the Orissa Economic Association in Baripada, Orissa, on 21st February 2010. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=481) ^1b30cf >[!summary] The Reserve Bank formally adopted a “multiple indicators approach” in April 1998. > >1. Since the mid-1990s, apart from dealing with the usual supply shocks, monetary policy had to increasingly contend with external shocks emanating from swings in capital flows, volatility in the exchange rate and global business cycles. Subsequently, increase in liquidity emanating from capital inflows raised the ratio of net foreign assets (NFA) to Reserve Money. >2. This rendered the control of monetary aggregates more difficult. Consequently, there was also increasing evidence of changes in the underlying transmission mechanism of monetary policy with interest rate and the exchange rate gaining importance vis-à-vis quantity variables.8 Bank credit to private sector as a per cent of GDP also started rising, though it still remains low as compared to advanced economies and many EMEs underscoring the potential for greater credit penetration. >3. These developments necessitated refinements in the conduct of monetary policy. Against this backdrop, the Reserve Bank formally adopted a “multiple indicators approach” in April 1998. ## 2004 1. [Dec 23, 2004](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=10994) - The Report on Currency and Finance, 2003-04 had the theme-Monetary Policy==. ## 2010-11 1. This [note](Liquidity%20Adjustment%20Facility%20(LAF).md#2010-2011) has more details ## 2014 1. [Jan 21, 2014](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30446)- The [Expert Committee](RBI_Group-Committee_2014_The%20Expert%20Committee%20to%20Revise%20and%20Strengthen%20the%20Monetary%20Policy%20Framework-2014_Chairman-Urijit%20R.%20Patel.pdf) to Revise and Strengthen the Monetary Policy Framework, chaired by Dr. Urjit Patel, during the tenure of [[Raghuram G. Rajan]], submitted its report. 1. It reviewed the multiple indicators approach and recommended that inflation, as measured by headline All India CPI-Combined (rural and urban), should be the nominal anchor for the monetary policy framework. 2. [More details](Liquidity%20Adjustment%20Facility%20(LAF).md#2014) 2. **Inflation as nominal-anchor of monetary policy** 1. It was the experience of Global Financial Crisis (GFC) in 2008-09 made India question the credibility of multiple indicator approach. Hence, there was a need for a "clearly defined" anchor for the policy. ^2bf1d4 ## 2015 1. [Feb 20, 2015](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=481) - The Central government of India and the RBI, signed the [[Monetary Policy Decisions in the RBI - The Structure#^7b5d45|Monetary Policy Framework Agreement (MPFA)]] ## 2016 - Flexible Inflation Targeting **This section is divided into 2 parts.** 1. Part 1 - This [note](Monetary%20Policy%20Decisions%20in%20the%20RBI%20-%20The%20Structure.md#2016%20-%20FIT%20framework%20and%20formation%20of%20Monetary%20Policy%20Committee%20(MPC)) has details about Flexible Inflation Targeting (FIT) framework adopted on May 14, 2016 and the formation of [Monetary Policy Committee (MPC)](Monetary%20Policy%20Decisions%20in%20the%20RBI%20-%20The%20Structure.md#2016%20-%20FIT%20framework%20and%20formation%20of%20Monetary%20Policy%20Committee%20(MPC)) on June 27, 2016. 2. Part 2 - [Changes in Liquidity Management Framework](Liquidity%20Adjustment%20Facility%20(LAF).md#^5bfc4e) ## 2020 1. ==In [[Liquidity Adjustment Facility (LAF).md#^04e5b5|Feb-2020]] after period of 6 years, RBI made significant [revisions](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49343) to the liquidity management framework and thereby the [liquidity facilities](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49352) based on the suggestions of the above Internal Working Group-2019.== >Box III.1 - [Liquidity Management Challenges from Forex Market Operations](RBI_Annual%20Report_2025.pdf) in RBI's Annual Report-2025 ## Summary 1. The efficient conduct of monetary policy is judged ultimately in terms of its ability to stabilise real economic activity and inflation and also ensuring financial stability consistent with the policy objectives. [^3] # Groups and Committees These are the [committees/working groups](Groups%20and%20Committees.md)/discussion papers constituted on issues of monetary policy (including liquidity management) till 2025. 1. [September 1978](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/415154_SEPTEMBER1978DA3246CD583746F58F3D0AEEC28C5F23.PDF) - Report on Selective Credit Control System (By Sampat P. Singh) 2. [April 10, 1985](RBI_Group-Committee_19850410_Report%20of%20the%20Committee%20to%20Review%20the%20Working%20of%20the%20Monetary%20System_Chairman-Sukhamoy%20Chakravarty.pdf) - Committee to Review the Working of the Monetary System, chaired by Prof. Sukhamoy Chakravarty 3. [January 1987](RBI_Group-Committee_198701_Report%20of%20the%20Working%20Group%20on%20Money%20Market%201987_Chairman-N.%20Vaghul.pdf) - Working Group on Money Market (Vaghul Group, 1987), chaired by N. Vaghul 4. [April 22, 1998](RBI_Group-Committee_19980422_Report%20of%20the%20Committee%20on%20Banking%20Sector%20Reforms-Narasimham%20Committee%20–%20II%20(1998).pdf) - Report of the Committee on Banking Sector Reforms-Narasimham Committee – II (1998) 5. [August 6, 1999](https://rbi.org.in/Scripts/PublicationReportDetails.aspx?FromDate=08/06/99&SECID=2&SUBSECID=8) - Report on Repurchase Agreements (Repos) 6. [Jan 13, 2003](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=4960) - Internal Group on Liquidity Adjustment Facility (Dec 2003) 7. [May 2005](RBI_Group-Committee_20050513_Report%20of%20the%20Technical%20Group%20on%20Money%20Market.pdf) - Report of the Technical Group (2005) on Money Market 8. [March 15, 2011](https://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=631) - Report of the Working Group on Operating Procedure of Monetary Policy, chaired by Deepak Mohanty 9. [Jan 21, 2014](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/ECOMRF210114_F.pdf) - Report of the Expert Committee to Revise and Strengthen the Monetary Policy Framework, chaired by Urjit Patel 10. [July 10, 2019](RBI_Report_20190710_Internal%20Working%20Group%20on%20Comprehensive%20Review%20of%20Market%20Timings.pdf) - Report of the Internal Working Group on Comprehensive Review of Market Timings 11. [Sep 26, 2019](RBI_Group-Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf) - Internal Working Group to Review the Liquidity Management Framework 12. [April 2025](RBI_Group-Committee_20250502_Working%20Group%20on%20Comprehensive%20Review%20of%20Trading%20and%20Settlement%20Timings%20of%20Markets%20Regulated%20by%20the%20Reserve%20Bank.pdf) - Report of the Working Group on Comprehensive Review of Trading and Settlement Timings of Markets Regulated by the Reserve Bank of India (April 2025), chaired by Radha Shyam Ratho. 1. *Related Note -* [Trading & Settlement Timings of Market regulated by RBI](Trading%20&%20Settlement%20Timings%20of%20Market%20regulated%20by%20RBI.md) 13. [Aug 06, 2025](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60963) - Internal Working Group to Review the Liquidity Management Framework, chaired by Dr. Poonam Gupta 14. [Aug 21, 2025](RBI_Occasional_Discussion%20Papers_20250821_Review%20of%20Monetary%20Policy%20Framework%20-%20A%20Discussion%20Paper.pdf) - Review of Monetary Policy Framework - A Discussion Paper (Publications/Occasional/Discussion Papers). # Related Notes 1. [[Liquidity Adjustment Facility (LAF)]] 2. [[Monetary Policy Decisions in the RBI - The Structure]] 3. [[Money Market Operations (MMO)]] 4. [Inflation](Inflation.md) 5. [Inflation and RBI](Inflation%20and%20RBI.md) 6. [Flexible Inflation Targeting (FIT)](Flexible%20Inflation%20Targeting%20(FIT).md) # References ### [[Speeches & Media Interactions|Speeches]] 1. C. Rangarajan. (Nov 11, 1997). ==Ninth V.T. Krishnamachari Memorial Lecture on "The Role of Monetary Policy==. (by C. Rangarajan at New Delhi 11th November 1997). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=252) 2. Y. V. Reddy. (Feb 01, 1999). ==Development of Money Market in India==. (Dr.Y.V. Reddy, at the Fifth J.V.Somayajulu Memorial Lecture, at Madras, on February 1, 1999). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=13) 3. Y.V. Reddy. (May 26, 1999). ==Monetary Policy in India : Objectives, Instruments, Operating Procedures and Dilemmas.== Dr.Y.V. Reddy, at the Fourth Securities Industry Summit, organised by Invest India Pvt. Ltd., at Mumbai, on May 26, 1999. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=19) 4. Y. V. Reddy. (Jan 15, 2002). ==Parameters of Monetary Policy in India==. (Dr. Y. V. Reddy, at the 88th Annual Conference of The Indian Econometric Society at Madras School of Economics, Chennai on January 15, 2002.). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=97) 5. Y.V. Reddy. (Feb 12, 2005). ==Monetary Policy: An Outline==. (Dr. Y.V. Reddy, Governor, Reserve Bank of India ,at the Annual Conference of Andhra Pradesh Economic Association, at Visakhapatnam on February 12, 2005). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=184) 6. Rakesh Mohan. Aug 24, 2006. ==New Economic Geography and Monetary Policy in a Flattening World==. (by Dr. Rakesh Mohan, Deputy Governor, Reserve Bank of India, as an Overview Panelist at a Symposium sponsored by the Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming, August 24-26, 2006). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=308) | [pdf](RBI_Speeches_20060824_New%20Economic%20Geography%20and%20Monetary%20Policy%20in%20a%20Flattening%20World_Rakesh%20Mohan.pdf) 7. Rakesh Mohan. (June 14, 2007). ==Capital Account Liberalisation and Conduct of Monetary Policy: The Indian Experience.== Paper Presented by Dr. Rakesh Mohan. (Paper presented at an International Monetary Seminar organised by Banque de France on Globalisation, Inflation and Financial Markets in Paris on June 14, 2007). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=340) 8. Y V Reddy. Nov 02, 2007. ==Evolving role of the Reserve Bank of India: Recent Developments.== (Speech delivered by Dr. Y V Reddy, Governor, Reserve Bank of India on the occasion of the Foundation Day of the Institute of Development Studies, Jaipur on June 30, 2007). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=363) 9. Rakesh Mohan. (March 27, 2006). ==Coping with liquidity management in India: A practitioner's view==. (by Dr. Rakesh Mohan, Deputy Governor, Reserve Bank of India at IGIDR on March 27, 2006). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=278) 10. Rakesh Mohan. (May 17, 2006). ==Evolution of Central Banking in India==. (by Dr. Rakesh Mohan, Deputy Governor at the seminar organized by the London School of Economics and the National Institute of Bank Management at Mumbai on January 24, 2006). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=285) 11. Rakesh Mohan. (May 25, 2006). ==Monetary Policy and Exchange Rate Frameworks: The Indian Experience==. Presentation by Deputy Governor, Reserve Bank of India at the Second High Level Seminar on Asian Financial Integration organised by the International Monetary Fund and Monetary Authority of Singapore in Singapore on May 25, 2006. 12. Rakesh Mohan. (Apr 02, 2007). ==Annex I: Reforms in the Monetary Policy Framework in "Monetary Policy Transmission in India"== . (Paper presented by Dr. Rakesh Mohan, Deputy Governor, RBI, at the Deputy Governor's Meeting on "Transmission Mechanisms for Monetary Policy in Emerging Market Economies - What is New?" at Bank for International Settlements, Basel on Dec 7-8, 06.). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=329#annexi) 13. Deepak Mohanty. Mar 02, 2010 .==Monetary Policy Framework in India: Experience with Multiple-Indicators Approach.== (Speech by Shri Deepak Mohanty, Executive Director, Reserve Bank of India, delivered at the Conference of the Orissa Economic Association in Baripada, Orissa, on 21st February 2010. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=481) 14. Duvvuri Subbarao. (Jan 31, 2011). ==Implications of the Expansion of Central Bank Balance Sheets==. (Comments of Dr. Duvvuri Subbarao, Governor, Reserve Bank of India at the Special Governors’ Meeting in Kyoto, Japan, on January 31, 2011.). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=547) | [pdf](RBI_Speeches_20110131_Implications%20of%20the%20Expansion%20of%20Central%20Bank%20Balance%20Sheets.pdf) 15. ✅ Deepak Mohanty. (Aug 12, 2011). ==How does the Reserve Bank of India Conduct its Monetary Policy?== (Speech by Shri Deepak Mohanty, Executive Director, Reserve Bank of India, delivered at the Indian Institute of Management (IIM), Lucknow on 12th August 2011). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=590) 16. ✅ H. R. Khan. (Jan 09, 2012). ==The Shrinking Money and RBI’s Monetary Policy==. [Address](The%20Shrinking%20Money%20and%20RBI’s%20Monetary%20Policy%20-%20A%20speech%20by%20H.%20R.%20Khan,%20ex-Deputy%20Governor,%20Reserve%20Bank%20of%20India%20-%202011.md) delivered by Shri. H. R. Khan, Deputy Governor, Reserve Bank of India at 10th National Management Seminar – 2011, Bhubaneswar on The Shrinking Money: Combating Debt Crisis and Inflation on December 10, 2011 organized by The Asian School of Business Management. [Link](https://rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=651) 17. ✅ Michael Debabrata Patra. Nov 20, 2017. ==One Year in the Life of India's Monetary Policy Committee==. (Dr. Michael Debabrata Patra, Executive Director - October 27, 2017 - at the Jaipur Regional Office of the Reserve Bank of India. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1050) 18. ✅ Shaktikanta Das. (Jan 24, 2020). ==Seven Ages of India’s Monetary Policy==. (Shri Shaktikanta Das, Governor, Reserve Bank of India - January 24, 2020 - at the St. Stephen's College, University of Delhi). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1092) 19. ✅ Shaktikanta Das. (2023, September 5). ==Art of monetary policy making: The Indian context==. (Speech by Shri Shaktikanta Das, Governor, Reserve Bank of India - September 5, 2023 - Delhi School of Economics (DSE) Diamond Jubilee Distinguished Lecture). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1381) ### [[Publications (Data Releases) & Research#Research|Research]] [[Working Paper Series (WPS)|Working Paper Series (RBI)]] 1. A.K. Mitra and Abhilasha. ==Determinants of Liquidity and the Relationship between Liquidity and Money: A Primer.== RBI WPS (DEPR) : 14/2012. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=14331) | [pdf](RBI_Research_WP_20120726_RBI%20WPS%20(DEPR)%20-%2014:2012-%20Determinants%20of%20Liquidity%20and%20the%20Relationship%20between%20Liquidity%20and%20Money-%20A%20Primer.pdf) 2. Khundrakpam, J. K., & Jain, R. (2012). ==Monetary policy transmission in India: A peep inside the black box.== RBI WPS (DEPR): 11/2012. [Link](https://www.rbi.org.in/scripts/PublicationsView.aspx?id=14326) | [pdf](RBI_Research_WP_20120627_RBI%20WPS%20(DEPR)-%2011:2012-%20Monetary%20Policy%20Transmission%20in%20India-%20A%20Peep%20Inside%20the%20Black%20Box.pdf) 3. Edwin Prabu A, Indranil Bhattacharyya. (July 4, 2023). ==Regime-Dependent Determinants of the Uncollateralised Overnight Rate: The Interplay of Operating Procedure and Market Microstructure.== RBI WPS (DEPR): 07/2023. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=21790) | [pdf](RBI_Research_WP_20230704_RBI%20WPS%20(DEPR)-%2007:2023-%20Regime-Dependent%20Determinants%20of%20the%20Uncollateralised%20Overnight%20Rate-%20The%20Interplay%20of%20Operating%20Procedure%20and%20Market%20Microstructure.pdf) 4. Apr 26, 2024. ==Equity Markets and Monetary Policy Surprises==. RBI WPS (DEPR): 03/2024. Authors - Mayank Gupta, Amit Pawar, Satyam Kumar, Abhinandan Borad and Subrat Kumar Seet. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=22443) ### [[Publications (Data Releases) & Research#Publications|Publications]] 1. RBI. (2003, December). Report of the Internal Group on Liquidity Adjustment Facility. [Link]((https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=4960) 2. RBI. (Dec 23, 2004). ==Report on Currency and Finance, 2003-04 Theme: Monetary Policy==. [Link](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=10994) 3. RBI. (2013). ==Report on Currency and Finance 2009–2012: Fiscal-Monetary Co-ordination==. [Link](https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0RCF040313_F0912.pdf) 4. RBI (Mar 18, 2006). ==Report on Currency and Finance Theme: The Evolution of Central Banking in India (2004-05)==. [Link](https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/69291.pdf) 5. RBI. (Aug 29, 2008). Box III.2 - Challenges to Liquidity Management. RBI's Annual Report-08. [Link](RBI_Annual%20Report_2008.pdf#page=204&selection=70,0,71,34) 6. RBI. (Mar 15, 2011). ==Report of the Working Group on Operating Procedure of Monetary Policy (Chairman-Deepak Mohanty)==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=631) | [pdf](RBI_Group:Committee_20110315_Report%20of%20the%20Working%20Group%20on%20Operating%20Procedure%20of%20Monetary%20Policy_Chairman-Deepak%20Mohanty.pdf) 7. RBI. (Aug, 2018). Table 3: Variation in Reserve Money and Main Durable Liquidity Drivers. RBI Bulletin (August-2018). 8. RBI. (2020). ==Box-1: Revised Liquidity Management Framework in "Liquidity Management in the Time of Covid-19: An Outcomes Report"==. RBI Bulletin-July, 2020. [Link](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=19658) 9. RBI. (Feb 26, 2021). ==Chapter I: Flexible Inflation Targeting (FIT) in India in "Report on Currency and Finance-2020-21".== [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=20342) 10. RBI. (Feb 26, 2021). ==Chapter II: The Goals of Monetary Policy in "Report on Currency and Finance-2020-21".== [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=20343) 11. RBI. (Feb 26, 2021). ==Chapter III: Monetary Policy Decision Making Process in "Report on Currency and Finance-2020-21".== [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=20344) 12. RBI. (Feb 26, 2021). ==Chapter IV: Operating Procedure of Monetary Policy in "Report on Currency and Finance-2020-21".== [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=20345) 13. RBI. (Feb 26, 2021). ==Chapter V: Open Economy Flexible Inflation Targeting in "Report on Currency and Finance-2020-21".== [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=20346) 14. RBI. (Aug 21, 2025). ==Review of Monetary Policy Framework - A Discussion Paper. Occasional/Discussion Papers==. [Link](https://rbi.org.in/scripts/PublicationsView.aspx?Id=23171) [Groups/Committees](Groups%20and%20Committees.md) 1. RBI. (1985). ==Report of the Committee to Review the Working of the Monetary System==. Chairman: Sukhamoy Chakravarty. [Link](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/050385_1985606EE0A77CF1477797856D41802779D5.PDF) 2. RBI. (1987). ==Working Group on Money Market (Chairman - N. Vaghul)==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=1133) | [pdf](RBI_Group-Committee_198701_Report%20of%20the%20Working%20Group%20on%20Money%20Market%201987_Chairman-N.%20Vaghul.pdf) 3. RBI. (1998). ==Report of the working group on money supply: analytics and methodology of compilation== (Chairman: Dr. Y. V. Reddy). Mumbai. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=1087) 4. RBI. (August 6, 1999). ==Report on Repurchase Agreements (Repos)==. [Link](https://rbi.org.in/Scripts/PublicationReportDetails.aspx?FromDate=08/06/99&SECID=2&SUBSECID=8) 5. RBI. (March 12, 2001). ==Report of the Technical Group on Phasing Out of Non-banks from Call/Notice Money Market==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=218) | [pdf]((https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/19943.pdf) 6. RBI. (Nov 12, 2001). ==Report of the Expert Committee to Review the System of Administered Interest Rates and Other Related Issues==. [Link](https://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=3190) | [pdf](RBI_Group-Committee_20011112_Report%20of%20the%20Expert%20Committee%20to%20Review%20the%20System%20of%20Administered%20Interest%20Rates%20and%20Other%20Related%20Issues_Chairman-Y.%20V.%20Reddy.pdf) 7. RBI. (December 2, 2003). ==Report of the Internal Group on Liquidity Adjustment Facility==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=341) | [pdf](RBI_Group:Committee_20031202_Report%20of%20the%20Internal%20Group%20on%20Liquidity%20Adjustment%20Facility.pdf) 8. RBI. (March 15, 2011). ==Report of the Working group on Operating Procedure of Monetary Policy (Chairman-Deepak Mohanty)==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=631) | [pdf](RBI_Group:Committee_20110315_Report%20of%20the%20Working%20Group%20on%20Operating%20Procedure%20of%20Monetary%20Policy_Chairman-Deepak%20Mohanty.pdf) 9. RBI (Jan 21, 2014). ==Report of the Expert Committee to Revise and Strengthen the Monetary Policy Framework (Chairman-Dr. Urjit R. Patel, then Deputy Governor, RBI)==. [Link](https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/ECOMRF210114_F.pdf) | [pdf](RBI_Group:Committee_2014_The%20Expert%20Committee%20to%20Revise%20and%20Strengthen%20the%20Monetary%20Policy%20Framework-2014_Chairman-Urijit%20R.%20Patel.pdf) 10. RBI. (September 26, 2019). ==Report of the Internal Working Group to Review the Liquidity Management Framework==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=944) | [pdf](RBI_Group%20Committee_20190926_Report%20of%20the%20Internal%20Working%20Group%20to%20Review%20the%20Liquidity%20Management%20Framework.pdf) 11. RBI. (August 6, 2025). ==Report of the Internal Working Group to Review the Liquidity Management Framework==. [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=1305) ### [Press Releases & Notifications](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx) 1. RBI. (April 17, 2020). Governor’s Statement, April 17, 2020. [Link](https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3853) 2. RBI. (April 12, 2017). ==Security Substitution Facility for term repos conducted by Reserve Bank of India under the Liquidity Adjustment Facility==. [Link](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=10919) | [pdf](RBI_Notification_20170412_Security%20Substitution%20Facility%20for%20term%20repos%20conducted%20by%20Reserve%20Bank%20of%20India%20under%20the%20Liquidity%20Adjustment%20Facility.pdf)] 3. RBI (Feb 6, 2020). ==Liquidity facilities under revised Liquidity Management Framework==. [Statement of Developmental and Regulatory Policies on February 06, 2020](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49343). [Link](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49352) | [pdf](RBI_Press%20Release_20200206_Liquidity%20facilities%20under%20revised%20Liquidity%20Management%20Framework.pdf) ### Others 1. Mohanty and Mitra (1999), “Experience with Monetary Targeting in India”, _Economic and Political Weekly,_ January 16-23, pp 123-132. 2. Y. V. Reddy (2005). ==Monetary policy operating procedures in India==. Bank for International Settlements. [Link]([https://www.bis.org/publ/plcy05e.pdf](https://www.bis.org/publ/plcy05e.pdf) 3. Kaushik Bhattacharya. (2006). [Monetary policy approaches in India](https://www.bis.org/publ/bppdf/bispap31g.pdf). BIS Papers chapters in [Monetary policy in Asia: approaches and implementation](https://www.bis.org/publ/bppdf/bispap31.pdf), volume 31, pages 74-102. Bank for International Settlements. 4. C. Rangarajan. (Feb 21, 2020). ==The new monetary policy framework—What it means==. In: Prof. Sukhamoy Chakravarty Memorial Lecture, delivered at Annual Conference of the Indian Econometric Society at Madurai Kamaraj University in January 2020. NIPFP Working Paper Series. [Link](https://www.nipfp.org.in/media/medialibrary/2020/02/WP_297_2020.pdf) | [pdf](NIPFP_WPS_20200221_The%20new%20monetary%20policy%20framework%20–%20What%20it%20means%20(2020)_C.%20Rangarajan.pdf) 5. C. Rangarajan. (June 2, 2016). ==RBI and the liquidity question==. Business Line. [Link](https://www.mse.ac.in/wp-content/uploads/2019/05/business-line-june-2-2016.pdf](https://www.mse.ac.in/wp-content/uploads/2019/05/business-line-june-2-2016.pdf) 6. C. Rangarajan & Samantaraya A. (2017). ==RBI’s Interest Rate Policy and Durable Liquidity Question==. _Economic and Political Weekly_, _52_(22), 12–16. [Link](http://www.jstor.org/stable/26695763) 7. GoI. (Jan 28, 2018). ==Chapter 3: Monetary Management and Financial Intermediation in Union Budget 2017-18==. [Link](https://www.indiabudget.gov.in/budget2017-2018/es2016-17/echap03_vol2.pdf) 8. Pami Dua. (June 23, 2020). ==[Monetary policy framework in India](https://ideas.repec.org/a/spr/inecre/v55y2020i1d10.1007_s41775-020-00085-3.html)==, [Indian Economic Review](https://ideas.repec.org/s/spr/inecre.html), Springer, vol. 55(1), pages 117-154, June. [Link](https://pmc.ncbi.nlm.nih.gov/articles/PMC7309432/) | [pdf](Pami%20Dua_20200623_Monetary%20policy%20framework%20in%20India_Indian%20Economic%20Review%202020.pdf) 9. Barry Eichengreen and Poonam Gupta. (Aug, 2024). ==Inflation Targeting In India: A further assessment==. NCAER Working Paper. [Link](https://www.niti.gov.in/sites/default/files/2025-03/NCAER_WP_174_BarryEichengreen_PoonamGupta_August2024-1.pdf) 10. Bank for International Settlements (BIS). (n.d.). Currency area overviews-India. [Link](https://www.bis.org/mc/currency_areas/in.htm) 11. EGROW. ==A Project Draft On “Policy Interest Rates, Market Rates, Inflation and Economic Growth==. Niti Aayog. [Link](https://www.niti.gov.in/sites/default/files/2023-03/A%20Project%20Draft%20On%20%E2%80%9CPolicy%20Interest%20Rates%2C%20Market%20Rates%2C%20Inflation%20and%20Economic%20Growth%E2%80%9D.pdf) [^2]: Reserve Bank of India. (2014). _Appendix Table II.1: Nominal anchors – Pros and cons_. In _[Report]( [https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?ID=746) of the Expert Committee to Revise and Strengthen the Monetary Policy Framework_ (pp. 83–84). Chairman: Dr. Urjit R. Patel [^3]: Deepak Mohanty. Mar 02, 2010 .==Monetary Policy Framework in India: Experience with Multiple-Indicators Approach.== (Speech by Shri Deepak Mohanty, Executive Director, Reserve Bank of India, delivered at the Conference of the Orissa Economic Association in Baripada, Orissa, on 21st February 2010. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=481) [^6]: Y. V. Reddy. (Feb 01, 1999) Development of Money Market in India. (Dr.Y.V. Reddy, at the Fifth J.V.Somayajulu Memorial Lecture, at Madras, on February 1, 1999). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=13)