Question

Who regulates the money supply in India?

विकल्प

• Government of India

• RBI

• NITI Aayog

• None of these

Answer 1

RBI

Explanation:

As the central bank of the nation, the Reserve Bank of India (RBI) holds the sole authority to formulate monetary policy and regulate the money supply. It utilizes quantitative and qualitative tools such as the Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), and repo rates to control market liquidity, manage inflation, and ensure financial stability.