RBI & ITS ROLE Join @BankingAwareness4Exams 1)    RBI is | Current Affairs Keeda

RBI & ITS ROLE
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1)    RBI is the central Bank of India and controls the entire money issue, circulation and control by its monetary policies and lending policies.

2)    It is also known as the lender of last resort.

3)    It was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934 & ntionalized in 1949.

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Main Functions

1)   Monetary Authority: Formulate, implements and monitors the monetary policy.

2)   Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country’s banking and financial system functions.

3)   Manager of Foreign Exchange: Manages the Foreign Exchange Management Act, 1999.

4)   Issuer of Currency: Issues and exchanges or destroys currency and coins not fit for circulations.

5)   Development role: Performs a wide range of promotional functions to support national objectives.

6)   Bankers to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.

7)   Bankers to banks: maintains banking accounts of all scheduled banks.
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