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VOL. 7, ISSUE 4 (2025)
An analytical study of the Reserve Bank of India and its monetary policy framework in the post-reform era
Authors
Bulen Borah
Abstract
The Reserve Bank of India (RBI), established in 1935, has played a
central role in maintaining monetary stability and supporting India’s economic
growth. Since the economic reforms of 1991, the RBI’s approach to monetary
policy has undergone a significant transformation, moving from direct
regulatory controls to a more flexible, market-based framework. This study
examines the evolution of the RBI’s monetary policy in the post-reform period,
focusing on changes in policy instruments, institutional strategies, and crisis
management. Using secondary sources such as RBI reports, government publications,
and academic research, the paper analyses major developments including the
adoption of inflation targeting, the use of liquidity adjustment facilities,
and improvements in policy communication. The findings suggest that the RBI has
strengthened its credibility and enhanced price stability, while supporting
economic growth. However, challenges remain, including fiscal pressures,
banking sector weaknesses, uneven credit distribution, and emerging issues such
as digital finance, financial inclusion, and climate related risks. Overall,
the study highlights the RBI’s evolution into a modern, adaptive central bank
that balances the dual objectives of price stability and growth in a
liberalized and globalized economy.
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Pages:17-20
How to cite this article:
Bulen Borah "An analytical study of the Reserve Bank of India and its monetary policy framework in the post-reform era". International Journal of Commerce and Economics, Vol 7, Issue 4, 2025, Pages 17-20
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