This paper tries to examine the relationship between some selected key rates and bank nifty in India using daily closing observation of the NSE bank nifty and selected key rates such as Inflation rate, Cash Reserve Ratio and Bank Rate from 1st January 2004 – 31 st December 2014. Statistical techniques are applied to study the behavior and dynamics of different set of data. Bank nifty is very volatile in respect to change in these selected rates. A weak negative correlation is observed between bank nifty with selected rates in long run.