The correct answer is C. Reserve Bank of India.
The Reserve Bank of India (RBI) is the central bank of India. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI is the banker to the government of India and the banker’s bank. It is also the issuer of the Indian rupee.
The RBI is responsible for formulating and implementing monetary policy in India. It does this by setting the repo rate, the reverse repo rate, and the cash reserve ratio. The repo rate is the rate at which the RBI lends money to commercial banks. The reverse repo rate is the rate at which commercial banks lend money to the RBI. The cash reserve ratio is the percentage of deposits that commercial banks must keep with the RBI.
The RBI also regulates the commercial banks in India. It does this by setting the minimum capital requirements for commercial banks and by inspecting their books. The RBI also supervises the payment and settlement systems in India.
The RBI is a statutory body. It is governed by a board of directors, which is appointed by the government of India. The RBI is headquartered in Mumbai, India.
The other options are incorrect.
Option A: The Ministry of Finance is the ministry of the Government of India responsible for the formulation and implementation of the country’s economic policies. It is not responsible for formulating monetary policy.
Option B: NITI Aayog is a policy think tank of the Government of India. It is not responsible for formulating monetary policy.
Option D: Commercial banks are financial institutions that accept deposits from the public and lend money to businesses and individuals. They are not responsible for formulating monetary policy.