Detailed Explanation:

Answer: Option 4 — Reserve Bank of India

The Reserve Bank of India (RBI) is the central bank of India and is statutorily mandated to maintain price stability while keeping in mind the objective of growth. The RBI uses various monetary policy tools such as repo rate, reverse repo rate, cash reserve ratio (CRR), and statutory liquidity ratio (SLR) to control money supply and credit conditions in the economy, thereby managing inflationary pressures.

📝 Short Notes: RBI and Price Stability

• Primary Mandate: The amended RBI Act, 1934 mandates the RBI to maintain price stability as its primary objective, while keeping growth in mind.
• Monetary Policy Committee (MPC): Constituted under Section 45ZB of the RBI Act, the MPC is a six-member committee that determines the policy interest rate (repo rate) required to achieve the inflation target.
• Inflation Targeting Framework: Introduced in 2016, the RBI follows flexible inflation targeting with a mandate to maintain Consumer Price Index (CPI) inflation at 4% with a tolerance band of +/- 2%.
• Monetary Policy Tools: Repo rate, reverse repo rate, CRR, SLR, open market operations (OMO), and marginal standing facility (MSF) are key instruments.
• Other Agencies: Department of Consumer Affairs monitors prices and essential commodities; Expenditure Management Commission reviews government expenditure; Financial Stability and Development Council (FSDC) coordinates financial stability but does not directly control inflation.