Monetary Policy is a regulatory policy of Reserve Bank of India, through which it tries to exercise control over the money supply in the economy for the accomplishment of general economic objectives. It involves manipulation of money supply, the level & structure of interest rates & other conditions influencing the level of credit. The RBI fixes the bank rate which forms the foundation of the interest rates structure and reserve ratios, which in turn, determine the level of credit and money supply available, thereby playing an imperative role in the growth and development of an economy. Inflation beyond the threshold level makes growth expensive and calls for a change in policy. RBI authorities strive hard to curb the inflation by adopting several monetary policy measures, the significant amongst which are changes in Bank Rate, CRR & SLR which directly influence the money supply in the economy with immediate effect without creating many distortions in the market. In this regard, the paper aims to study the impact of changes in monetary policy over the last 6 years and the consequent effect of the same on money supply and the level of inflation in the economy.