Commercial Banks plays an important role in making available the credit facility to industrial and commercial sector in economy. The reason before is that the major source of finance to diligence are Banks. They give finance in the different forms. Still due to the strong control medium of Reserve Bank of India, the banks face various difficulties in furnishing the credit facility because of the rules and regulations. This study is accepted to find out Impact of Monetary Policy on the Bank’s Performance, and this may be helpful as an excellent trouble to Government and Reserve Bank of India in making of the programs of regulation of the central Bank, and in deciding the Interest rates would meet the macroeconomic objects of the Indian economy. The ideal of this research study is to analysing the impact of Monetary Policy on performance of the commercial Banks including their profitability. The fiscal Sector is majorly impacted by the Banking system, that's to say it's the utmost dominating sector of the economy or fiscal Sector. Indian Banks are explosively governed by the bird’s eye of controller (Reserve Bank of India) and regulated regularly. Still difficulty in assessing could be a well gauged to the fiscal health of the economy. This research study principally focuses on the issue whether the financial policy styles or Monetary Policy Instruments works or not as important motorist to put a regulation on the affectation and recession in forthcoming times of economy. This thesis also assesses the extent to which it could impact profitability position of Banks. The results of thesis show that there has been a significant impact of change in Monetary Policy on the profitability, affectation and other aspects of commercial Banks. But at the same time when the financial policy is strain; commercial banks will be having flexible options to acclimate the lending rates or deposit rates to cut down the impact on their profitability and fiscal position due to increase in its financial policy rates. Banks work in agreement with the financial programs to gain the asked results in the economy.

Keywords: Economy, Instruments, Financial, Policy, Profitability, Dominating, Banking, System, banks.