Question

What is the function of RBI?

Answer 1

The Reserve Bank provide financial assistance to the scheduled banks by discounting their eligible bilk and through loans and advances against approved securities

Answer 2

Answer- The above question is from the chapter 'Money and Credit' in Economics.

RBI stands for Reserve Bank of India.

Functions of RBI-

1) RBI issues currency i.e. rupees on behalf of Government of India.

2) RBI supervises the functioning of banks and other formal sources of credit.

3) RBI ensures that banks give loans to small farmers and small traders rather than large businessmen.

4) After some period, banks have to submit reports to RBI about the loans given, at what rate of interest they have been given, etc.