CURRENT AFFAIRS

Detailed explanation-1: -Under the Reserve Bank of India, Act,1934 (RBI Act,1934 ) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.

Detailed explanation-2: -The MPC’s first meeting was held on 3 and 4 October 2016 prior to the Fourth Bi-monthly Monetary Policy Statement, 2016-17. The RBI’s Monetary Policy Department (MPD) supports the MPC in framing the monetary policy.

Detailed explanation-3: -Monetary policies are formed and managed by the central banks of a country and such a policy is concerned with the management of money supply and interest rates in an economy.

Detailed explanation-4: -The monetary authority of India is the Reserve Bank of India (RBI). 2.

Detailed explanation-5: -Central banks conduct monetary policy by adjusting the supply of money, usually through buying or selling securities in the open market. Open market operations affect short-term interest rates, which in turn influence longer-term rates and economic activity.