The Role of the Reserve Bank of India in the Management of Monetary Policy and Financial Stability: An Analysis of Recent Interventions and Their Impacts

Abstract

*The Reserve Bank of India (RBI) is the central banking institution of India, responsible for the country's monetary and financial Regulates the system. The main functions of the RBI include issuing currency, managing foreign exchange, regulating commercial banks and implementing monetary policy to ensure price stability and economic growth. It also plays an important role in overseeing the payment and settlement systems of the country and supporting the fiscal policy of the government. This research paper examines the important role of the Reserve Bank of India (RBI) in formulating monetary policy and maintaining financial stability in India. Does. It focuses on the recent interventions of the Reserve Bank of India and their impacts. The study explores how the RBI has adapted its policy tools in the face of inflationary pressures, growth challenges and global financial uncertainties. In this, major measures of RBI like interest rate adjustment, liquidity management and regulatory reforms have been analyzed. Important functions of RBI in the critical period of Indian economy have been mentioned in the research paper. The research provides a new insight into the strategic priorities of the RBI and makes recommendations to enhance its role in the global economic environment.