1Director & Professor, Om Kothari Institute of Management & Research, Kota, Rajasthan-326001. E-mail: amit637460@gmail.com
2Associate Prof., MBA Department, Om Kothari Institute of Management & Research, Kota, Rajasthan-326001. E-mail: che_sharma@hotmail.com
*Corresponding Author: Dr. Amit Singh Rathore, Director & Professor, Om Kothari Institute of Management & Research, Kota, Rajasthan-326001. E-mail: amit637460@gmail.com
Online published on 17 August, 2019.
The Money supply is the total amount of money in circulation in the economy at any point of time. In India RBI is the central bank and it is a note issuing authority of the country. The total monetary flow is greatly affected by the demonization. Not only the new currency was printed in place of old notes but also some of the new currency was printed in new denominations. The total money flow in the economy and inflation are directly related to each other. The money supply is controlled by the RBI by various tools such as Cash Reserve Ratio, Statutory Liquid Ratio to manage money supply in the economy. In Indian total money in circulation is approximately Rs 17,54,000 crore according to the RBI's database on the Indian economy and the Inflation rate is 4.88%.
RBI, CRR, SLR, Inflation Rate, Demonetization
