Monetary policy targets a particular supply level of money in an economy. This is done by the RBI in India, in order to maintain price stability and curb inflation in the economy. As per the recommendations of Urjit Patel Committee RBI proposed New Monetary Policy (CPI Model) which is line with other developed nations and set an inflation target of 6% by Jan 2014 and to bring further down in future to set the country in progressive goal. The study is focused on New Monetary Policy under the broad area of Monetary Policy Reforms and its goal with respect to bringing down inflation until 2016 and the causes for low inflation. Besides, the study also focuses on impediments of bringing inflation in future.