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The monetary policy transmission in India works with a lag for bank lending, according to a Reserve Bank of India working paper titled Monetary Policy Transmission in India: New Evidence from Firm-Bank Matched Data . The Paper is authored by Saurabh Ghosh, Abhinav Narayanan and Pranav Garg. Monetary policy transmission has remained a pivotal topic of interest across all central bankers. Empirically, however, it is hard to dis-entangle the effects of a policy change on firms investment demand, banks credit supply and their interactions. This paper uses a unique firm-bank matched data set from India to provide new insights into the monetary policy transmission mechanism. ....

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