2/04/2015 marked 80 years since Reserve Bank of India has been in operation. It has been wonderful 80 years of operations- managing the impossible trinity ain't am easy task & it has been doing it since ages. Impossible trinity in economics refers to managing exchange rates, inflation & industrial growth in a country (more on that in the other article). RBI has a policy of bi-monthly policy review in a year, wherein it conducts a review of the policy in force & modifies it if the need be. In its recent review on 07/04/2015 RBI kept its policy rate and CRR & SLR unchanged against the expectations of many bankers . First up is the purpose of RBI. RBI is a regulator of financial markets in India, majorly of banking sector. It is basically the central bank of India much like Federal Reserve in USA. It can release policy statements & thereby effect the rates in Indian economy by changing Repo rates, CRR & SLR. All banks in the country then accordingly c