Anjali Bhatt, Assistant Professor (Senior- Scale), School of Law, UPES, Dehradun
ABSTRACT
After the nationalization of the Reserve Bank of India in 1948, it was felt that traditional instruments of bank rate, open market operations and minimum statutory cash reserve ratio were far too short of empowering the bank to effectively control the country’s monetary system which would emerge as a consequence of the economic planning in the country when the bank would be called upon to play a more positive and dynamic role in the economy’s planned economic growth. The Banking Regulation Act, 1949 armed the Reserve Bank of India with special powers of exercising direct control over the operations of the commercial banks in India. Both these Acts have in effect armed the Reserve Bank of India with almost dictatorial powers over the country’s monetary and banking system with regard to the control and regulation of credit in the country. This project seeks to understand the monetary policy and the credit policy that India has formulated. India has transited different phases in its economy, with the help of RBI and its schemes. It has used different tools to ensure the current economic structure, the authors seek to examine the same.
Keywords: Banking, Nationalization, Economic Planning, Credit Policy, Monetary Policy, etc.
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