Question

❤hey please answer this really urgent

✅Reserve Bank of India is an Apex Bank to all the other banks in the country justify the statement ❓

class 10 social (economics) CBSE
ch-3 money and credit​

Answer 1

Answer:

The Reserve Bank of India (RBI) is India's central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of the entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India.

RBI regulates commercial banks and non-banking finance companies working in India. It serves as the leader of the banking system and the money market. It regulates money supply and credit in the country. The RBI carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India. RBI was set up in 1935 under the Reserve Bank of India Act,1934.

Until the Monetary Policy Committee was established in 2016,[6] it also controlled monetary policy in India.[7] It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934.[8] The original share capital was divided into shares of 100 each fully paid .[9] Following India's independence on 15 August 1947, the RBI was nationalised on 1 January 1949.

Explanation:

Answer 2

Reserve Bank of India (RBI) is an Apex Bank to all the other banks in the country justify the statement

Explanation:

• The RBI is the Central Bank of India and is also at the apex of the economy's banking structure. It is one of India's main regulatory bodies and regulators, helping the government in its position as a facilitator of industry.
• The RBI manages all other business banks in the nation. They provide other banks with short-term advances & loans. The RBI will also dictate to commercial banks the interest rates and CRR (Cash Reserve Ratio) limits.
• RBI is the only approved entity in the nation capable of issuing currency. Hence the RBI prints, distributes, & regulates the flow of currency within the nation.
• Even the central & state govts require basic banking functions. These services are offered by the RBI such as deposit of funds, transfers etc. RBI can also offers advances and loans whenever necessary.
• RBI's function is to maintain the rupee's value in the world economy. This achieves so by serving as custodian of the nation's foreign reserves. It maintains ample reserves to battle fluctuations.
• The primary role of RBI is to control the money or credit. RBI employs qualitative & quantitative techniques for either extending or contracting available credit under economic circumstances