In 1985 South Asian Association for regional Cooperation was established with the intention of improving regional collaboration in the fields of economics, social sciences, cultural practices, and scientific research. The existing membership of SAARC comprises of Afghanistan, Pakistan, and Sri Lanka, besides Bangladesh, Bhutan, and the Maldives are all members of this group. In 1998, the SAARCFINANCE Network was founded with the purpose of fostering dialogue on the macroeconomic policies of the region and facilitating the exchange of ideas and experiences among members, all within the context of a larger framework. It was agreed that the study would be carried out by utilizing data gathered from a survey in order to record the typical Monetary Policy operations and acquire information from first-hand sources. A initial draft of this research was presented at a SAARC FINANCE meeting that took place in Islamabad, Pakistan. The comments and suggestions made by the central banks of all SAARC nations were compiled. In this evaluation, the operational and legal aspects of the mechanisms for formulating Monetary Policy and making decisions that are established in the central banks of SAARC states are analyzed and discussed. On the other hand, in order to broaden the scope of the investigation, extra data was collected not only from official websites but also from other sources, such as the central bank. Because the completion of this study was dependent on the accessibility of source data as well as the comments from the central banks of the SAARC countries, it took a considerable amount of time to finish.