2.6. Revision of Monetary Policy in India

Historically, in India the monetary policy was announced twice a year, namely a slack season policy (April to September) and a busy season policy (October to March). But, in the wake of pressures of globalization and growing importance of monetary policy, RBI has become more proactive in altering the monetary policy from time to time depending upon the state of economy. Also, the RBI has moved in for a single monetary policy every year in April end although the review of monetary policy takes place every quarter.

Presently, Monetary Policy in India is managed by Monetary Policy Committee, thus the Governor of RBI is no longer the sole authority to decide on the Monetary Policy.