Question:easy
Who declares the "Credit Policy" of India?
Who declares the "Credit Policy" of India?
Show Hint
Think of the body that acts as India's central bank.
Updated On: Jul 14, 2026
- The Finance Ministry
- Reserve Bank of India
- The Commerce Ministry
- The Indian Bank's Association
Show Solution
The Correct Option is B
Solution and Explanation
Step 1: Identify the role of a central bank.
A country's central bank manages money supply and interest rates through what is called credit policy or monetary policy.
Step 2: Apply this to India.
In India, the Reserve Bank of India, the central bank, is the body that reviews and declares this credit policy at regular intervals.
Step 3: Rule out the other bodies.
The Finance Ministry handles fiscal and budget matters, the Commerce Ministry deals with trade, and the Indian Bank's Association is only an industry group, none of them set credit policy.
Final Answer:
The Reserve Bank of India declares the Credit Policy of India. \[ \boxed{\text{Reserve Bank of India}} \]
A country's central bank manages money supply and interest rates through what is called credit policy or monetary policy.
Step 2: Apply this to India.
In India, the Reserve Bank of India, the central bank, is the body that reviews and declares this credit policy at regular intervals.
Step 3: Rule out the other bodies.
The Finance Ministry handles fiscal and budget matters, the Commerce Ministry deals with trade, and the Indian Bank's Association is only an industry group, none of them set credit policy.
Final Answer:
The Reserve Bank of India declares the Credit Policy of India. \[ \boxed{\text{Reserve Bank of India}} \]
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