During the period of reform since 1991, there has been a gradual and mutually agreed progress towards greater autonomy in matters relating particularly to financial markets and, in the conduct of monetary policy. III.
Monetary policy framework  The preamble to the Reserve Bank of India Act, 1934 sets out in a way broadly the tone of RBI’s monetary policy objectives: “to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage”.