Question

Explain the functions of RBI.

Answer 1

Explanation:

It controls the monetary policy concerning the national currency, the Indian rupee.

Answer 2

The reserve bank of India is the central bank of India and performs various important functions.

Explanation:

The reserve bank of India performs various important functions which are crucial for the economy. These are as follows:

1. The reserve bank of India gives money to other banks in the country for lending purposes.
2. The reserve bank of India maintains various ratios such as the capital reserve ratio, the reserve ratio, etc. These ratios are important in correcting economic situations such as slowdown, deflation, inflation, etc.
3. The reserve bank of India also placed on the guidelines for the operation of banks.