MONETARY AND CREDIT POLICY :
As part of the monetary management, the Reserve Bank of India announces their policies on a regular basis, which is called as Monetary and Credit Policy
Monetary Policy statement consists of two parts. Part A cover Monetary Policy and is divided into four sections viz., –
1. Overview of global and domestic macroeconomic developments
2. Outlook and projections for growth, inflation and monetary aggregates
3. Stance of monetary policy
4. Monetary measures.
Part B deals with the developmental and regulatory policies consisting five sections viz.,
(a) Financial Stability
(b) Financial Markets
(c) Credit Delivery and Financial Inclusion
(d) Regulatory and Supervisory Measures and
(e) Institutional Developments
The various aspects of global economy and domestic economy and the significant events which took place in the past year, are covered. Further the outlook for the future in respect of global and domestic economies are discussed. The policy also highlights the important risks like inflation risk, current account deficit and the monetary measures to manage such and other risks are covered. Added to these, the issues and policy measures relating to financial stability, financial markets, control measures through regulations and supervision are also covered. The Policy also indicates the quarterly review period. Various initiatives taken by the Reserve Bank of India as regulator and supervisor in the Indian banking scenario are also highlighted. It also includes the credit delivery and other issues relating to priority sector lending. The IT initiatives and the related issues are also discussed.
The Monetary policy outlines the various measures taken and expected to be taken by the Reserve Bank of India in their role as the Monetary Management.