<Dt> Credit Authorization Scheme </Dt> <Dd> Credit Authorization Scheme was introduced in November, 1965 when PC Bhattacharya was the chairman of RBI . Under this instrument of credit regulation RBI as per the guideline authorizes the banks to advance loans to desired sectors . </Dd> <Dl> <Dt> Moral Suasion </Dt> <Dd> Moral Suasion is just as a request by the RBI to the commercial banks to take so and so action and measures in so and so trend of the economy . RBI may request commercial banks not to give loans for unproductive purpose which does not add to economic growth but increases inflation . </Dd> </Dl> <Dd> Moral Suasion is just as a request by the RBI to the commercial banks to take so and so action and measures in so and so trend of the economy . RBI may request commercial banks not to give loans for unproductive purpose which does not add to economic growth but increases inflation . </Dd>

Explain the recent impact of monetary policy on indian economic environment