explain the functions of The Reserve Bank of India
Answers
1) RBI ISSUES CURRENCY.
2) IT PROVIDES LOANS.
3 ) IT SEES THE FUNCTIONING OF OTHER BANKS.
4) POOR PEOPLE ALSO. GET CREDIT AT LOW INTEREST RATE.
Answer:
✴Functions of Reserve Bank✴
1. Issue of Notes —The Reserve Bank has the monopoly for printing the currency notes in the country.
2. Banker to the Government–The second important function of the Reserve Bank is to act as the Banker, Agent and Adviser to the Government of India and states.
3. Banker’s Bank:- The Reserve Bank performs the same functions for the other commercial banks as the other banks ordinarily perform for their customers. RBI lends money to all the commercial banks of the country.
4. Controller of the Credit:- The RBI undertakes the responsibility of controlling credit created by the commercial banks.
5. Custodian of Foreign Reserves:-For the purpose of keeping the foreign exchange rates stable, the Reserve Bank buys and sells the foreign currencies and also protects the country's foreign exchange funds.
Explanation: