Reserve Bank of India Is Central Bank of India the Institution Charged with The Responsibility of Managing the Expansion and Contraction of The Volume of Money in The Interest of General Public Welfare Is Termed as Central Bank a Central Bank Is a Bank That Managers All the Other Banks.
Function Reserve Bank of India
1 Monetary Functions
Bank Of Issue
In Every Country the Central Bank of The Country Is Empowered Fully to Partially for Issuing or Making of Currency RBI Is Authorised to Issue All the Currency Notes Except For 1 Rupees Note and Currency Notes RBI Is Finance Ministry of Government of India Who Issue Rupees 1 Note and Currency Coins the Distribution of All the Currency Including Rupee 1 Currency Note and Currency Coins Lies in The Hand Of RBI
Banker To the Government
RBI Is a Banker to Government It Works as A Bank for The Government It Maintenance All the Banking Accounts of The Government Departments as A Banker RBI Give Launched to Government Deposit Money of The Government Gives Cash for Payment of Salaries and Wages to Staff Collects Check Etc
Bankers Bank and Lender of The Last Resort
RBI Function as Banker to All This Schedule Bank in India
The Three Functions as A Banker to Banks Are Managers Cash Reserves of Bank Determine Direction of Credit as Well As Direct Credit Policy Rate of Interest for All the Banks Interest Rates for Saving Deposit Fixed Deposit Loans Etc RBI Also Lens Money to Schedule Bank in Case of Emergency.
Controller Of Credit
RBI Controls Credit Creation of The Banks by Various Monetary Policy Tools Like Repo Rate Reserve Repo Rate SLR CR Etc
Custodian Of Foreign Exchange Reserve
RBI Holds All The Important For An Exchange Reserve Or Currency Like US Dollar British Pound Gold Etc In Its Custody RBI Mentals This Reserve With Them So As To Maintain The Value Of Rupees As Compared To Other Currency Under The Fixed Exchange Rate Process Of International Monetary Fund Fixed Exchange Rate Resume Is When The Value Of Countries Currency In Relation To The Value Of Other Currency Is Maintain At The Fixed Conversion Rate By The Central Bank Of Country RBI Maintenance The Value Of Rupee In The World Economy By Buying And Selling This Foreign Exchange Reserve In The Open Market
2 Non-Monetary Functions of Reserve Bank of India
1 Regulatory and Supervisory Function
RBI Controls All the Functions of Commercial Bank and Co-Operative Banks It’s Supervises Various Function Like Licencing of Banks Branch Expansion Liquidity of The Asset and Management and Methods of Working
2 Promotional Function
In India There Are Many People Who Still Do Not Hold Bank Accounts Due To This This People Are Force To Do All The Dealings Of Money Credit In Unorganised Money Market This Creates Problem For The RBI To Find Out Exact National Income Of Country At The Do Not Have Any Track Of The Money Transacted Those Due To The Above Mention Problems Faced By RBI It Has To Do Promotional Activities Of Banks RBI And Courageous People To Open Bank Account And Also Promote Banks To Open Their Branches In The Ruler Areas Where People Staying There Benefit Of Making Services It Also Promote Setting Up Of Banks For The Interest Of People
3 Financial Inclusion and Development
Going To India’s Highly Diversified Economy It Becomes Difficult For RBI To Reach All The Section Of People Does RBI Promotes Financial Inclusion Which Means Providing Banking Services To Low Income Segment Of Society At An Affordable Price It Provides Special Credit Facility To Agriculture Small Scale Industry Self Employed People And Cottage Industry RBI Also Managers The Prime Minister Jan Dhan Yojana RBSE Also Made Its Website Very User Friendly It Publishers Various Banking Related Information And Statistics As Well As Articles Of Expert On Its Website Search Publication Has People To Promote Research Related To Banking And Bringing Monetary Improvement In The Country
Monetary Policy the Policy Undertaken by Apex Bank for Regulating the Supply of Money Order to Maintain Economic Stability Keeping into Consideration the Process of Economic Development in Test of People Is Called Monetary Policy in Simple Word the Policy Which Regulate the Demand for Money and Supply of Money in Economy Is Called the Monetary Policy It Is Friend by The Central Bank Reserve Bank of India
Need Of Monetary Policy
RBI Controls The Demand For Money And Supply Of Money In The Economy In Other Words It Managers The Liquidity Of Economy If There Arises And Imbalance In The Demand And Supply Of Money Then It Can Lead To Inflation Or Deflation In The Economy Inflation And Deflation Brings Economic Instability And Effects The Value Of Currency Of The Country Monetary Policy Helps To Maintain The Demand For Money And Its Supply In The Economy And Hands Stabilizers Chief Financial Market Of The Country Says The Monetary Policy Stabilizers The Demand And Supply And Hands The Inflation And Deflation In The Economy It Is Also Known As Stabilization Policy
Definition Of Monetary Policy
The Conscious Steps Undertaken By The Monetary Authority Which Brings About Changes In This Talk Of Money Source Of Generation Of Money And Cost Of Money Is Called Monitory Policy The Policy Which Interest Various Tools Of Regulating Supply Of Money In The Hands Of The Apex Bank With The Purpose Of Achieving General Economic Objective Is Called Monetary Policy The Policy Under Taken By The Apex Bank For Regulating The Supply Of Money Order To Maintain Economic Stability Keeping Into Consideration The Process Of Economic Development Interest Of The Public Is Called The Monetary Policy.