Explain the function of RBI
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Explain the function of RBI
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Answer:
In the Indian context, the basic functions of the Reserve Bank of India as enunciated in the Preamble to the RBI Act, 1934 are: “to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to ...
Answer:
7 Major Functions of the Reserve Bank of India
Issue of Bank Notes: The Reserve Bank of India has the sole right to issue currency notes except one rupee notes which are issued by the Ministry of Finance.
Banker to Government: As banker to the government the Reserve Bank manages the banking needs of the government.
Custodian of Cash Reserves of Commercial Banks: The commercial banks hold deposits in the Reserve Bank and the latter has the custody of the cash reserves of the commercial banks.