Policy in India is a part of economic policy. It is the management of money supply and interest rates by Central bank to influence prices and growth. Monetary works through expansion or contraction of investment and consumption expenditure. The three primary objectives of economic policy in India have been Growth, Social Justice, and Price Stability. Reserve Bank of India is the monetary authority in the country. The Reserve Bank of India operates in an atmosphere of democracy, and hence due preference is given to political control. The monetary policy pursued by the Reserve Bank of India has been characterized as a controlled monetary expansion. It refers to a policy of adequate financing for activities that promote economic growth with reasonable price stability. India is Monetary considered inflation-resistant, and so keeping a low rate of inflation has been a crucial objective of monetary policy. It aims at controlling inflation by restraining the secondary expansion of credit and regulating the supply of money in order to meet the requirements of different sectors of the economy to accelerate the pace of economic growth.