what are the functions of RBI?.....5 mark question...pls answer fast
Answers
1. Issue of Notes —The Reserve Bank has the monopoly for printing the currency notes in the country. It has the sole right to issue currency notes of various denominations except one rupee note (which is issued by the Ministry of Finance). The Reserve Bank has adopted the Minimum Reserve System for issuing/printing the currency notes. Since 1957, it maintains gold and foreign exchange reserves of Rs. 200 Cr. of which at least Rs. 115 cr. should be in gold and remaining in the foreign currencies.
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. It performs all the banking functions of the State and Central Government and it also tenders useful advice to the government on matters related to economic and monetary policy. It also manages the public debt of the government.
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.
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Question :- what are the functions of RBI?
Answer ⬇⬇⬇⬇⬇⬇⬇⬇⬇⬇⬇⬇⬇⬇⬇
The proper points to this answer are :-
- RBI issues currency notes on behalf of the central govt.
- It also acts as the representative of Government in International Monetary Fund (I.M.F.) and represents the membership of India.
- RBI supervises the functioning of formal source of loans.
- It also sees that banks give loans not just for profit making and traders but also to small borrowers, small cultivators etc..
- It monitors the banks in actually maintaining cash balance.
- RBI also checks at what rate the banks are lending
Hope it helps you
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