RBI – Reserve Bank of India

The Reserve Bank of India (RBI) is India’s central bank, also known as the banker’s bank. The RBI controls the monetary and other banking policies of the Indian government. What are the major functions of the RBI? The preamble of the RBI says... "to regulate the issue of Bank notes and 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 its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth." Some of the basic functions of the RBI are: 1. Issuer of notes: The RBI is the only institution which has the control over printing of currency notes (except the one rupee note, which is printed by the finance ministry). 2. Banker to the government: The RBI performs banking functions for the state and central governments. It advises the governmen...