Reserve Bank of India's Control Over Money Supply Impacting Economic Growth
High powered money in India is the total of bank reserves and currency held by the public. It is crucial for creating the money supply. The Reserve Bank of India controls high powered money to regulate the broader money supply and achieve monetary policy goals like controlling inflation and promoting economic growth. Banks create money by making loans, which increases the money supply. The composition of high powered money in India can change due to factors like monetary policy and economic conditions.