The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy, explicitly mandated under the Reserve Bank of India Act, 1934. The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth. The MPC (Monetary Policy Committee) determines the policy interest rate to achieve the inflation target. RBI uses instruments like Repo rate, Reverse repo, Open market operations, and Liquidity adjustment facility to control inflation.