what is the prime function of reserve Bank of India
Answers
Answered by
14
Answer:
The main functions of the RBI include: Monetary authority: formulates, implements, and monitors India's monetary policy. The main objectives of which are maintaining price stability, ensuring adequate flow of credit to productive sectors, and financial stability.
Answered by
7
Explanation:
RBI keep a cash reserve ratio with the bank,to prevent the bank from being bankrupt and also for controlling the inflation of money in the market.
If RBI wants more circulation of money in market it decrease cash reserve ratio.If RBI wants less money in circulation it increase the cash reserve ratio.
Similar questions