Question

Describe the function of RBI.

Answer 1

Important points for your answer has been provided below. You may add details for the points.

The Reserve Bank is the Apex Bank in India because of the following functions:

• Monetary Authority
• Issuer of Currency
• Banker and Debt Manager to Government
• Banker to Banks
• Regulator of the Banking System
• Manager of Foreign Exchange
• Regulator and Supervisor of the Payment and Settlement Systems
• Maintaining Financial Stability
• Developmental Role