Impact of RBI's Monetary Policy for the Last Two Decades and Medium Te

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Furthermore, credit to the commercial sector was regulated, with prescriptions of multiple lending rates and a prevalence of directed credit at highly subsidised interest rates. Monetary policy had to address itself to the task of neutralising the inflationary impact of the growing deficit...
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Monetary policy had to address itself to the task of neutralising the inflationary impact of the growing deficit. The Reserve Bank had to resort to direct instruments of monetary control, in particular the cash reserve ratio. This ratio was used to neutralise the financial impact of the Government's budgetary operations rather than as an independent monetary instrument...
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