The RBI regularly controls the level of credit supplied by the commercial banks by changing the bank rate. When Bank rates changes it suddenly impacts on Economy. When RBI decrease bank rate it is called 'cheap money policy’. Money supply in the economy is increased. When RBI increases bank rate, it is called 'dear money policy'. Money supply in the economy is decreased. RBI uses bank rate to balance economic growth and inflation. This paper examines Changing bank rates & its impact on Indian economy. This paper Researcher has tried to find out extent changing bank rate facilitated impact on Indian economy. Researcher has focused its analysis on the Movements in Bank Rate during 1991-2016.