The Reserve Bank of India (RBI) is entrusted with the responsibility of maintaining price stability and controlling inflation through monetary policy. It utilizes various tools, such as the repo rate and cash reserve ratio, to manage money supply and influence interest rates, which in turn stabilize prices. This function is pivotal for sustaining economic growth and ensuring the overall economic stability of the country, thereby making the RBI a key institution in India's macroeconomic framework, as delineated in standard UPSC reference materials and the NCERT syllabus.