What are the four functions of the reserve banks
Answers
Answer:
The main functions of the RBI (Reserve Bank of India ):
1.Regulates transactions related to the external sector, enables the development of the foreign exchange
2.Protects the interests of depositors, facilitates orderly development and conduct of banking operations, and maintains financial stability through preventive and corrective measures
3.Banker and debt manager to government of India: performs merchant banking functions for central and state governments
4.Enables clearing and settlement of inter-bank transactions, maintains banks’ accounts for statutory reserve requirements, and acts as a lender of last resort
Answer:
1) issue of bank notes
2) banker to government
3) custodian of cash reserves as commercial banks
4) central clearance and accounts settlements
5) controller of credit