Lesson 2 of 2 · 6 min
Who controls the money
The RBI issues notes, sets the repo rate and supervises banks — but it is only one of several regulators here, so a complaint sent to the wrong one stalls.
A committee meets in Mumbai, changes one number, and within a quarter your home loan instalment has moved. That number is the repo rate — the rate at which the Reserve Bank of India lends short-term money to banks.
The RBI also issues the currency and supervises every bank holding your money. When the repo rate moves, floating loan rates usually move with it, and deposit rates follow more slowly.
| Body | What it controls |
|---|---|
| RBI | Currency, banks, payments, the repo rate |
| Government of India | Taxation, spending, small savings rates |
| SEBI | Securities markets and mutual funds |
| IRDAI | Insurance |
| PFRDA | NPS and Atal Pension Yojana |
Just for you
Look at your last bank statement. Can you find anything on it you cannot explain?
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1 / 3
Kabir asks
Your cousin's home loan is repo-linked and the RBI raises the repo rate. What does he see?
Done reading?
Saved in this browser — and finishes the course.