International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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From Policy Cycles to Treasury Resilience: The Impact of RBI Monetary Policy on Corporate Financial Decisions in India

Author(s) Ms. Nandini Virji Prajapati, CA Dr. Shyam Sundar Das
Country India
Abstract This research explores how the Reserve Bank of India’s monetary policy decisions have affected the way companies manage their cash, borrowings, and financial risks between 2015 and 2025. As a finance student, I have always been fascinated by how a few announcements from the RBI in Mumbai can create ripples that reach the treasury desks of companies across the country. The study particularly looks at how shifts in interest rates, liquidity conditions, and policy tools influence borrowing costs, working capital management, investment of surplus funds, and risk hedging strategies.
Over the last decade, the RBI has used the Monetary Policy Committee framework, flexible inflation targeting, and newer instruments like the Standing Deposit Facility and variable rate reverse repos quite effectively. For corporate treasurers, these changes have meant everything from cheap funding opportunities during the pandemic to higher borrowing costs and urgent hedging needs during the 2022-24 inflation fight.
This project is entirely based on secondary data collected from RBI reports, bond market data, financial databases, and research papers. The findings show a clear connection between RBI’s policy moves and how treasurers adjust their strategies. When rates go up, companies borrow less through short-term papers and prefer longer-term debt. When liquidity is tight, cash management becomes more cautious. Uncertainty pushes treasurers to hedge more actively.
The study concludes that staying alert to RBI signals gives treasurers a real edge in maintaining financial stability. It also offers practical suggestions for treasury teams working in different policy environments and suggests areas for future research.
Keywords RBI Monetary Policy, Corporate Treasury, Policy Transmission, Interest Rate Risk, Liquidity Management, Hedging, Corporate Borrowing, Working Capital, India
Published In Volume 8, Issue 3, May-June 2026
Published On 2026-06-10
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E-ISSN 2582-2160
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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